Stocks Rise After July CPI Data Matches Expectations. Is the Fed Done Hiking?

TLDR

• The S&P 500 rose 0.3% and the Nasdaq gained 0.7% after July’s CPI data came in as expected.
• July CPI showed inflation at 3.4% annually, easing slightly from June’s 3.5%.
• Traders shifted bets toward the Fed holding rates steady in September following the report.
• Ongoing Middle East tensions pushed Brent crude near $90 per barrel, keeping inflation elevated.
• Tech and AI stocks led gains, while software stocks lagged.

US stocks moved higher on Wednesday after July’s Consumer Price Index report matched Wall Street expectations, giving investors just enough comfort to push equities up.

The S&P 500 climbed 0.3%, the Nasdaq Composite gained 0.7%, and the Dow Jones Industrial Average traded roughly flat, dipping slightly to around 53,758.

July CPI showed inflation cooling to a 3.4% annual rate, down from June’s 3.5%. On a monthly basis, prices rose 0.1%.

“Not too hot, but also not too cold,” wrote Rosenberg Research’s David Rosenberg. He called it a neutral report for the bond market, adding there was no smoking gun for the Fed heading into September.

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