Inflation Agenda and Stock Movements in US Markets

US Stock Markets and Their Impact on Inflation Data

US stock futures began a volatile session following a mixed close the previous day. Fluctuations were observed among key benchmark indices, while inflation reports continued to impact the markets.

Stock Performance

Yesterday, technology stocks rose despite a decline in the broader market. On the other hand, financial, materials, and healthcare stocks experienced losses. For instance, Wells Fargo (WFC) reported second-quarter earnings that exceeded expectations, while JPMorgan Chase (JPM) also delivered a similarly strong performance. This situation has become a significant factor affecting market dynamics.

Inflation Reports and the Fed’s Policy Outlook

The Consumer Price Index (CPI) report released yesterday revealed an increase in inflation in the US. In June, the headline Consumer Price Index recorded a year-on-year increase of 2.7%. However, core inflation remained below expectations at 2.9%, compared to the anticipated 3%. Federal Reserve Chairman Jerome Powell continues to maintain a cautious stance regarding interest rate cuts in the face of uncertainties created by tariffs.

Market Reactions and Expectations

Navellier stated, “The CPI report does not affect the market,” indicating that expectations regarding the Producer Price Index (PPI) have increased. According to economic data, inflation is expected to hover around 3% for a while longer. Additionally, discussions regarding the potential impacts of Trump's tariffs on domestic markets continue, while the stock market is generally receiving positive feedback.

Notable Stocks

ASML Holding NV (ASML) shares experienced a significant drop in pre-market trading. The company’s inability to confirm growth expectations through 2026 created a negative impact on investors. On the other hand, Graphjet Technology (GTI) shares rose following the CEO's announcement of a strategic plan for a stock market debut. BTCS (BTCS) shares also gained value in tandem with the increase in cryptocurrency market capitalization.

Conclusion

The US stock markets continue to attract the attention of investors while evaluating the inflation data as well as the mixed balance sheet results of major banks. It is anticipated that the trend of inflation rates will have a significant impact on the stock market.