Confusion in US Stock Markets: Inflation Data in Focus

Inflation Data Shakes Markets

U.S. stock futures fluctuated between gains and losses today following a mixed close yesterday. The futures for major benchmark indices are showing a mixed trend as investors turn their attention to inflation data.

President Trump's Trade Announcement

U.S. President Donald Trump announced that he signed a trade agreement with Indonesia that secures important contracts for American aerospace and energy firms. This development is viewed positively by market players, but it holds the potential to increase uncertainty around the trade agenda.

Inflation Reports Draw Attention

The CPI report released yesterday indicated that inflation accelerated in June, prompting markets to reassess their positions. Fed Chairman Jerome Powell continues to adopt a wait-and-see approach amidst uncertainties arising from rising tariffs. The headline consumer price index rose by 2.7% year-on-year in June, marking the highest level since February.

Market Volatility

The Dow Jones index closed down 0.98% at 44,023.29 points, while the S&P 500 index declined by 0.40%, finishing at 6,243.76 points. Meanwhile, the Nasdaq Composite saw a 0.18% increase, reaching 20,677.80 points. The Russell 2000, an indicator of small-cap companies, closed down 1.99% at 2,205.05 points.

Stock Performance

Wells Fargo (WFC) reported an adjusted earnings per share that exceeded expectations for the second quarter. Similarly, JPMorgan Chase (JPM) reported strong second-quarter earnings. However, technology stocks challenged this trend, closing higher.

Analyst Opinions

Louis Navellier noted that inflation has not dropped to the Fed's 2% target and is likely to remain around 3% in the near future. Economist Ed Yardeni emphasized that core CPI inflation has risen to 2.9%, pointing out that the effects of tariffs have yet to become clear.

Other Developments in the Markets

ASML Holding NV (ASML) shares fell in pre-market trading due to the company’s inability to confirm growth potential for 2026. Additionally, Data Storage (DTST) experienced a rise on positive news regarding its plans to sell CloudFirst and initiate a stock buyback program.