[New York Stock Exchange] July CPI Slowdown Confirmed... S&P 500, Nasdaq Finish Higher

Market Closes with Tech Stocks Up
International Oil Prices Tick Up
2-Year Treasury Yield Declines

On the 12th (local time), the three major indices on the New York Stock Exchange closed mixed as the Consumer Price Index (CPI) for July showed signs of slowing. With the easing of inflation reducing concerns about a benchmark rate hike next month, tech-heavy Nasdaq and S&P 500 edged higher, while the Dow closed slightly lower.

On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average finished at 53,770.27, down 21.58 points (0.04%) from the previous session. The large-cap S&P 500 index rose 20.30 points (0.26%) to 7,748.50, and the technology-focused Nasdaq index closed at 26,588.48, up 143.04 points (0.54%).

New York Stock Exchange. New York, USA - Special Correspondent Yoonju Hwang

The market on this day focused on the release of the July CPI. According to the U.S. Bureau of Labor Statistics, the CPI rose 3.4% year-on-year in July. This represents a slowdown compared to June (3.5%) and matches the consensus among experts compiled by Dow Jones. On a month-over-month basis, consumer prices increased just 0.1%.

The core CPI, which excludes energy and food, rose 2.5% year-on-year, also slowing from the 2.6% recorded in June. On a month-over-month basis, core CPI was up 0.2%.

Energy prices, which fell 5.7% month-over-month in June, continued to decline in July, dropping another 1.5%. This contributed to the overall easing of price increases. Housing costs, historically a key contributor to inflationary pressure, rose only 0.1% from the previous month.

As the U.S. consumer price inflation rate eased from 4.2% in May to 3.5% in June and slowed further in July, projections are growing that the Federal Reserve's likelihood of raising its benchmark interest rate has diminished.

Ellen Zentner, Chief U.S. Economist at Morgan Stanley Investment Management, commented, "If inflation remains at an appropriate level, the projection that there is 'no need for a rate hike'—which was formed after last week's employment report—will become even firmer. Unless there is a significant change in the inflation data released before the September FOMC meeting, the probability of keeping rates unchanged next month is high."

No Concessions Between U.S. and Iran Over the Strait of Hormuz

While the United States and Iran have refrained from military escalation, they remain locked in uncompromising positions over negotiations related to the Strait of Hormuz. U.S. President Donald Trump posted on Truth Social, "The United States has total control over the Strait of Hormuz. I believe we will continue to maintain this."

He claimed that Iran's army and navy have been virtually destroyed, its economy has collapsed, adding, "Iran does nothing but talk. It is no longer the bully of the Middle East."

However, The Wall Street Journal (WSJ) reported that, as of the previous day, only 14 ships were recorded transiting the Strait of Hormuz. This figure amounts to just one-tenth of the daily average of about 130 ships prior to the outbreak of the Iran war.

As concerns about supply disruptions caused by a deadlock in U.S.-Iran negotiations met with forecasts for slowing global crude oil demand, international oil prices edged higher. On the New York Mercantile Exchange, September-dated West Texas Intermediate (WTI) crude rose 0.1% to $83.27 per barrel. On the ICE Futures Exchange, October Brent crude increased 0.1% to $88.98 per barrel.

By stock, CoreWeave and Super Micro Computer surged 19.28% and 19.02% respectively after reporting their latest quarterly earnings. Other artificial intelligence (AI)-related stocks also posted gains: Dell Technologies climbed 9.87%, Micron Technology 4.92%, Cisco Systems 2.86%, SK hynix ADR 9.01%, and Nvidia 3.03%, standing out among the leaders.

Daiwa Capital Markets lowered its target price for SpaceX from $175 to $140, but SpaceX shares still soared by 9.65%.

As of this time, according to Investing.com, the yield on the 10-year U.S. Treasury note holds steady at 4.684% compared to the previous session. The yield on the 2-year Treasury note is down 1.5 basis points (1bp = 0.01 percentage point) to 4.203%.

This content was produced with the assistance of AI translation services.