Both the S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) closed higher on Tuesday as investors assessed cooler-than-expected inflation data and a Strait of Hormuz update from President Trump.
Summer Sale - Claim 70% Off TipRanks
- Unlock powerful investing tools with TipRanks Premium to make smarter, more confident investment decisions
- Subscribe to TipRanks Smart Investor Newsletter, and discover new investing opportunities with data-backed stock picks
News That Moved the Stock Market Today
- Inflation cooled sharply in June, with the Consumer Price Index (CPI) declining 0.4% from the prior month. That was well below the analyst estimate for a 0.1% drop and marked the steepest decline since April 2020.
- Core CPI, which strips out food and energy, was flat month-over-month and rose 2.6% annually. Both readings were below expectations of 0.2% and 2.8%, respectively.
- Rate hike odds tumbled in response to the data. The odds of a 25 bps rate hike at the July 29 Federal Open Market Committee (FOMC) meeting dropped to 16.6% from 41.7% a day ago.
- Trump scrapped plans for a 20% cargo fee on vessels traveling through Hormuz under U.S. protection. Instead, the fee will be replaced by “Trade and Investment Deals” between the U.S. and Gulf nations, he said in a Truth Social post.
- IBM (IBM) plummeted after the tech giant issued underwhelming preliminary second-quarter results. IBM expects revenue of $17.2 billion, lower than the analyst estimate of $17.86 billion. It also guided for an adjusted EPS of $2.93, undercutting expectations of $3.01.
- Goldman Sachs (GS) closed higher after reporting its second-quarter earnings and raising its dividend by 11%.
- Nvidia (NVDA) rallied after a top U.S. official said that the semiconductor leader had begun shipping out a limited number of H200 chips to China.