Stocks edge higher after tame inflation report cools Fed hike bets
AI Market Summary
A softer-than-feared U.S. inflation print reduced expectations for a near-term Fed hike, lifting risk assets and particularly supporting growth/tech leadership. FedWatch probabilities shifted toward a September hold, easing rate-sensitive discount-rate pressure on equities. However, hawkish comments from Cleveland Fed's Hammack and Governor Cook underscore persistent policy debate and keep upside capped by renewed tightening risk if disinflation stalls.
Impact level
● High
Affected assets
NCSISP5002USD/USDT+0.25%
AI Insight · NCSISP5002USD/USDTAI Insight
▲ Bullish
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U.S. stocks rose after a tame inflation report eased expectations that the Federal Reserve will raise interest rates again. The Dow Jones Industrial Average edged up, while the S&P 500 added 0.25% and the Nasdaq Composite climbed 0.54%. CME FedWatch data showed the probability of a hike to 3.75%-4% fell by more than six percentage points to 41.9%, while the odds of rates staying at 3.5% to 3.75% rose to 58.1%. Headline CPI rose 0.1% on the month and 3.4% year over year, while core CPI increased 0.2% and 2.5%, and Cleveland Fed President Beth Hammack said more than one hike could be needed.
