US stocks rise ahead CPI data

Investors were optimistic that a slowdown in price increases would support an earlier than anticipated conclusion to the Federal Reserve’s programme of fast monetary tightening, which is why the Dow and S&P 500 increased on Tuesday ahead of inflation data.

Consumer prices are anticipated to have decreased on an annual basis in June according to the most recent data, which is due on Wednesday. This could affect predictions on another rate hike following the July meeting. After last week’s jobs data showed that the U.S. economy is robust, investors have already raised their expectations for a 25 basis-point rate hike later this month.


Following a bumpy session, the major US market indices ended marginally higher as Fed members gave a hint that the central bank was nearing the conclusion of its cycle of monetary tightening. John Williams, the president of the New York Fed, stated in an interview with the Financial Times that the central bank will continue to raise rates and that the economy has not yet fully benefited from previous rate increases.

Apple and Alphabet, two large-cap growth stocks, fell 0.3% and 0.1%, respectively, widening Monday’s losses after Nasdaq Inc. announced it would rebalance its Nasdaq 100 index to address the benchmark’s “overconcentration.” As opposed to a complete inclusion or deletion, the big-cap Nasdaq index will modify weightings, thus the impact of the rebalance may be minimal.