US markets today: Wall Street climbs on global rally and Fed rate-cut hopes, Asia and Europe join upswing
Easing Treasury yields supported the advance as investors bet on the Fed delivering its first rate cut of the year next month. Lower borrowing costs can boost asset prices and economic activity, though policymakers remain wary of reigniting inflation. 'Chili's is officially back, baby back!' Brinker International CEO Kevin Hochman said after the restaurant operator reported stronger-than-expected quarterly results, sending its shares up 7.5%.
The upbeat mood followed a surge in Asian markets, their first chance to react to Tuesday's better-than-expected US inflation data. Hong Kong's Hang Seng jumped 2.6%, Japan's Nikkei 225 gained 1.3% and South Korea's Kospi advanced 1.1%. European stocks also rose, with Germany's DAX up 0.7% and France's CAC 40 adding 0.5%.
On Wall Street, HanesBrands climbed 4.2% after agreeing to be acquired by Canada's Gildan Activewear in a $2.2 billion cash-and-stock deal.
Gildan's US-listed shares surged 10.1%. Grocery chains fell after Amazon announced plans to offer same-day fresh grocery delivery in over 1,000 US cities and towns; Kroger dropped 4.5% while Amazon gained 1.2%.
Cava Group slumped 16.8% after missing revenue expectations, trimming its 2025 sales outlook, and reporting flat guest traffic at established outlets. CoreWeave tumbled 13.2% after a wider-than-expected quarterly loss.
The yield on the 10-year Treasury fell to 4.24% from 4.29% on Tuesday and 4.50% in mid-July, marking a significant retreat for the bond market. President Donald Trump has continued pressing for rate cuts to aid the economy, often criticising the Fed chair personally. However, Fed officials remain cautious, citing concerns that Trump's tariffs could exacerbate inflation.
A key US wholesale inflation report due Thursday is expected to show a slight pickup to 2.4% in July from 2.3% in June.
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Time of India
41 minutes ago
- Time of India
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Producer Price Index (PPI) – July 2025 Monthly change: +0.9% (largest monthly rise since May 2022) Annual change: +3.3% (up from 2.4% in June) Goods prices: +0.7% (food, durable goods lead increase) Services prices: +1.1% (largest contributor to overall rise) Live Events July's PPI shows sharper inflation pressures than expected Wholesale prices surged in July, with the Producer Price Index (PPI) climbing 0.9% month-over-month — the largest increase since May 2022. Goods prices rose 0.7%, led by food and durable goods, while services jumped 1.1%. On an annual basis, PPI inflation accelerated to 3.3% from June's 2.4%, surpassing most economists' forecasts. Excluding volatile food and energy costs, core PPI jumped 0.6% in July, marking its steepest monthly rise in three and a half years. The annualized core rate now sits at 2.8%. For context, this core reading is critical because it reflects underlying inflation trends that most directly influence Federal Reserve policy. Core PPI (Excluding Food and Energy) Monthly change: +0.6% (largest monthly gain in 3.5 years) Annual change: +2.8% What rising PPI means for businesses and consumers? Wholesale price inflation often filters down to retail prices, impacting everything from groceries to housing costs. Companies facing higher input costs may pass them to consumers, fueling further price pressures. For households, even moderate increases in the PPI can translate to noticeable jumps in daily spending, particularly in food and energy. First-hand insights from industry sources indicate that manufacturers in the Midwest are already recalibrating supply contracts to hedge against rising costs. One executive in Chicago's food processing sector noted, 'We're seeing supplier prices move faster than our forecasts. Some of that will inevitably hit store shelves by early fall.' 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July's PPI and jobless claims provide a snapshot of the economic balancing act facing the U.S.: inflation pressures remain, but the labor market shows signs of moderation. The next few weeks of economic data will be crucial in shaping the Fed's September policy and market sentiment. Investors, businesses, and households alike are advised to watch for signals from upcoming CPI readings, retail sales reports, and corporate earnings updates. FAQs: Q1: What caused U.S. wholesale inflation to rise in July? July's PPI jump was driven by higher food and service costs, pushing inflation above expectations. Q2: How did jobless claims affect market outlook in July? Falling jobless claims signaled slight labor market easing, influencing S&P 500 futures and Fed rate expectations.
Time of India
41 minutes ago
- Time of India
US market today: S&P 500, Nasdaq slip from peaks; Dow down 104 points after hot inflation data
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