Latest news with #USCPI
Time of India
2 hours ago
- Business
- Time of India
US stock market greenlights rally: Dow, S&P, Nasdaq soar to record highs on strong Fed rate cut hopes after CPI inflation slowdown — Tech giants drive investor optimism
The U.S. stock market climbed sharply on August 12, 2025, as investors reacted enthusiastically to fresh signs that inflation is cooling. This pivotal development has intensified expectations that the Federal Reserve will soon ease interest rates, fueling gains across major indexes and lifting investor sentiment amid ongoing economic uncertainties. Dow Jones Industrial Average (DJIA) : The Dow surged by 449.85 points, closing at 44,424.94, marking a 1.02% increase. S&P 500 : The S&P 500 rose by 37.43 points, ending at 6,410.94, up 0.59%. Nasdaq Composite : The Nasdaq climbed 113.77 points to 21,499.17, a 0.53% gain. Finance Value and Valuation Masterclass - Batch 4 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program Finance Value and Valuation Masterclass - Batch 3 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals By Vaibhav Sisinity View Program Finance Value and Valuation Masterclass - Batch 2 By CA Himanshu Jain View Program Finance Value and Valuation Masterclass Batch-1 By CA Himanshu Jain View Program US CPI report today: What does July's inflation data mean for markets and consumers? The US CPI report today reveals a steady inflation landscape that's capturing the attention of investors, policymakers, and everyday Americans alike. July's Consumer Price Index showed inflation holding firm at 2.7% year-over-year, just a notch below expectations, with core inflation hitting a six-month high. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Health Insurance for parents Living in India Policybazaar Get Quote How did the US inflation numbers perform in July 2025? July's headline CPI rose 0.2% from June, signaling a mild monthly increase that aligns closely with economists' forecasts. Over the past year, overall inflation remained stable at 2.7%, unchanged from June. However, when stripping out volatile food and energy costs, core inflation accelerated to 3.1%, the highest pace in half a year. This surge is largely linked to tariffs pushing prices higher on consumer goods like apparel and furniture. Why are core prices rising despite energy costs falling? Energy prices actually fell by 1.1% in July, with gasoline dropping 2.2%, offering some relief at the pump. Food prices held steady overall — grocery prices dipped slightly, while dining out became marginally more expensive. But core inflation's jump reflects tariff-driven cost increases on many goods, underscoring persistent pressures beneath the surface of headline numbers. Live Events How are markets reacting to today's CPI release? Investors welcomed the inflation data with optimism. Major US stock indices, including the S&P 500, Dow Jones Industrial Average, and Nasdaq, all climbed following the report. The moderate headline inflation reassures markets that aggressive rate hikes may pause, while the core inflation uptick signals that caution remains warranted. What does the CPI report mean for Federal Reserve policy? Federal Reserve watchers will be closely analyzing this report. The mixed signals — steady headline inflation but rising core prices — complicate decisions about interest rates. Richmond Fed President Tom Barkin highlighted how consumer behavior, such as buying ahead of tariff increases, might be temporarily smoothing inflation spikes. However, he also warned that a sharp pullback in consumer spending could slow the economy and threaten jobs. Why are investors betting on a Federal Reserve rate cut now? Lower interest rates typically reduce borrowing costs for consumers and businesses, potentially stimulating spending and investment — key drivers of economic growth. Traders responded immediately, pushing the Dow Jones Industrial Average up by nearly 1% to 44,429 points, while the S&P 500 rose 0.5% to 4,269 and the tech-heavy Nasdaq gained 0.45%, signaling broad market optimism. How are individual sectors and companies reacting? While the overall market mood is positive, reactions within sectors are mixed. Technology stocks, often sensitive to interest rate moves, showed some volatility. Notably, Nvidia and AMD recently announced an unusual revenue-sharing agreement, which has drawn investor attention amid geopolitical tensions. U.S.-China trade dynamics continue to influence market sentiment. President Trump's administration's tariffs, including a staggering 245% levy on certain Chinese imports, have rattled global supply chains. China's warning against using Nvidia chips in government applications added a geopolitical layer, underscoring ongoing risks to tech firms' international operations. Apple Inc. (AAPL) : Closed at $228.59, up 0.62% Microsoft Corporation (MSFT) : Rose 0.92% to $526.59 Alphabet Inc. (GOOGL) : Increased 0.89% to $202.79 Inc. (AMZN) : Slightly down 0.27% Tesla Inc. (TSLA) : Declined 1.24% Current gold rate: What's behind the recent dip amid market rally and slowing inflation? The current gold rate in the USA has seen a slight decline as the stock market rallies and inflation shows signs of easing. On August 12, 2025, spot gold prices hovered around $3,350 per ounce, marking a modest dip of about 0.26% from recent levels. Why is gold slipping despite market volatility? Gold traditionally serves as a safe haven during times of economic stress, but recent U.S. inflation data has shifted investor sentiment. The Consumer Price Index (CPI) indicated a cooling inflation rate of 2.7% in July, with core inflation ticking up slightly to 3.1%. These numbers have fueled speculation that the Federal Reserve may soon ease interest rates, pushing investors back toward stocks and reducing the immediate demand for gold. How are stock gains influencing gold prices? Major U.S. stock indexes surged recently—Dow Jones, S&P 500, and Nasdaq all hit record highs—driven by expectations of an impending Federal Reserve rate cut. With tech giants leading the charge, market optimism has strengthened the U.S. dollar, which inversely affects gold prices. As the dollar gains strength, gold becomes more expensive for holders of other currencies, which can dampen demand. Is gold still a good safe-haven asset in 2025? Despite the short-term pullback, gold remains a key hedge against long-term risks like geopolitical tensions and global economic uncertainties. Investors continue to view it as a critical component of portfolio diversification, especially amid volatile markets and fluctuating monetary policies. What does this mean for global markets and investors? The unfolding scenario highlights a delicate balancing act for policymakers worldwide. As inflation eases in the U.S., central banks elsewhere watch closely, weighing whether to follow suit or maintain tighter policies in the face of global price pressures. Investors are closely monitoring the Federal Reserve's next moves, knowing that any rate cut could reverberate across asset classes—from equities to bonds and commodities. The market rally this week reflects hope for a smoother path forward but also underscores lingering uncertainties about how tariffs, inflation, and geopolitical factors will unfold. What should investors watch next? Key indicators to track in the coming weeks include the Federal Reserve's official statements and economic data releases on employment, manufacturing, and consumer spending. Market participants will also watch geopolitical developments, especially trade negotiations and regulatory decisions impacting technology firms. For now, the market's upward trajectory signals relief but also a cautious optimism that the Fed's potential easing of rates could help sustain economic momentum into 2026. This dynamic market update comes as investors worldwide recalibrate strategies amid evolving inflation signals and policy shifts. For ongoing real-time coverage, platforms like Yahoo Finance and CNBC remain essential sources to navigate this fast-moving landscape. FAQs: What is causing the recent U.S. stock market rise after the CPI report? The slower inflation shown by the CPI report is pushing expectations of a Federal Reserve rate cut, boosting the stock market. How could a Federal Reserve rate cut impact the stock market and economy? Lower interest rates from a Fed cut can encourage borrowing and spending, helping the economy and lifting stock prices.
Yahoo
21 hours ago
- Business
- Yahoo
Dollar Moves Higher Ahead of US CPI Report
The dollar index (DXY00) on Monday rose by +0.36% to a 1-week high. The dollar moved higher Monday as EUR/USD retreated after comments from Ukrainian President Zelenskiy dampened optimism of any quick resolution to the Russian-Ukrainian war when he rejected any talk of Ukraine ceding territory to Russia. Also, short-covering ahead of the US CPI report for July on Tuesday gave the dollar a boost. Gains in the dollar were limited after Fed Governor Michelle Bowman said she favors three Fed rate cuts this year. Gains in the dollar are also limited by the negative carryover from last Thursday, when President Trump nominated Stephen Miran to be a temporary replacement for Adrianna Kugler as Fed Governor. Miran is currently chairman of the Council of Economic Advisors and is seen as dovish and supporting President Trump's calls for lower interest rates. More News from Barchart Dollar Gains on Euro Weakness Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! On Saturday, Fed Governor Michelle Bowman said she supports cutting interest rates at the FOMC's next meeting in September and that she favors three rate cuts this year to "help avoid a further unnecessary erosion in labor market conditions and reduce the chance that the committee will need to implement a larger policy correction should the labor market deteriorate further." In recent tariff news, CNBC on Monday reported that President Trump will extend the tariff truce with China, which was to expire on Tuesday, for another 90 days. Last Wednesday, President Trump announced that he will impose a 100% tariff on semiconductor imports. Still, companies would be eligible for exemptions if they demonstrate a commitment to building their products in the US. However, the US will levy a separate tax on imports of electronic products that employ semiconductors. Also, President Trump announced last Wednesday that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India's purchases of Russian oil. Last Tuesday, Mr. Trump said that US tariffs on pharmaceutical imports would be announced "within the next week or so." According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced. Federal funds futures prices are discounting the chances for a -25 bp rate cut at 88% at the September 16-17 FOMC meeting and 63% at the following meeting on October 28-29. EUR/USD (^EURUSD) Monday fell by -0.27%. Reduced optimism that this Friday's summit between Presidents Trump and Putin would lead to an imminent end to the Russian-Ukrainian war is weighing on the euro after Ukrainian President rejected any plans for Ukraine to cede territory to Russia. The euro is also continuing to struggle due to concerns that President Trump's tariff policies will curb economic growth in the Eurozone. Swaps are pricing in a 6% chance of a -25 bp rate cut by the ECB at the September 11 policy meeting. USD/JPY (^USDJPY) Monday rose by +0.28%. The yen fell to a 1-week low against the dollar on Monday due to concern that US tariff policies will harm the Japanese economy. However, the decline in T-note yields on Monday limited losses in the yen. Trading activity was well below average on Monday, with financial markets in Japan closed for the Mountain Day holiday. December gold (GCZ25) on Monday closed down -86.60 (-2.48%), and September silver (SIU25) closed down -0.755 (-1.96%). Precious metals on Monday settled sharply lower, with gold falling to a 1-week low. Monday's rally in the dollar index to a 1-week high was negative for metals. Also, gold prices plunged when President Trump said Monday that imports of gold will not face tariffs, easing supply fears. On the positive side, comments from Fed Governor Michelle Bowman boosted demand for precious metals as a store of value when she expressed support for a Fed rate cut at next month's FOMC meeting and favors three Fed interest rate cuts this year. Precious metals still have safe-haven support on concerns that President Trump's tariff policies will weigh on global economic growth prospects. Finally, precious metals continue to receive safe-haven support from geopolitical risks, including the conflicts in Ukraine and the Middle East. Fund buying of precious metals continues to support prices after gold holdings in ETFs rose to a two-year high last Friday, and silver holdings in ETFs reached a three-year high on the same day. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
The Star
13-07-2025
- Business
- The Star
Ringgit likely to be in active trade and move between 4.24-4.26 against US dollar this week
KUALA LUMPUR (Bernama): The ringgit is expected to remain volatile this week, moving in the range between 4.24 and 4.26 against the US dollar, an analyst said. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that apart from the United States (US) tariff, the next key question is whether the Federal Reserve (Fed) would cut the interest rates. On that note, he said key data points would be the US Consumer Price Index (CPI) for June. Thus far, the inflation rate has been quite manageable during the 90-day pause period. "Obviously, the full implementation of reciprocal tariffs on August 1 would result in higher inflation, which could lead to the need to keep the Federal Fund Rate (FFR) steady as an ideal policy decision. "The US dollar index (DXY) has been gradually climbing and therefore, emerging market currencies, including the ringgit, could stay on the low side,' Mohd Afzanizam said. Meanwhile, SPI Asset Management managing partner Stephen Innes also said the ringgit is expected to trade within a narrow range ahead of the release of the US CPI next week, a key economic event likely to shape market direction and the Fed policy expectations. The upcoming US inflation report, due Tuesday, would be closely watched by financial markets as it could offer clear signals on the path of interest rates, he said. Innes said markets are particularly focused on the core CPI month-on-month figure, with 0.3 per cent seen as the critical threshold. "A softer-than-expected reading could revive hopes for a September rate cut by the Fed, potentially leading to a pullback in the US dollar and offering the ringgit some relief,' Innes said. However, he cautioned that a stronger print, particularly at 0.4 per cent or higher, would likely shift market expectations toward a more hawkish Fed, sparking renewed dollar strength. "In that scenario, the US dollar-ringgit pair could climb toward 4.2700, although any initial spike may be short-lived if profit-taking emerges,' he noted. He projected the ringgit to trade within a tactical range of 4.2400 to 4.2650, with market positioning expected to tighten further. "For now, the ringgit remains a passenger in a vehicle driven by US macro outcomes -- not a driver in its own right,' Innes added. On a Friday-to-Friday basis, the ringgit ended the week lower against the greenback, closing at 4.2475/2525 from 4.2180/2260 previously. The local note traded mostly higher against a basket of major currencies. The ringgit appreciated vis-a-vis the Japanese yen to 2.8893/8929 from 2.9225/9282, and increased against the British pound to 5.7524/7592 from 5.7601/7710 last Friday. However, it marginally fell versus the euro to 4.9679/9737 from 4.9675/9770 at the end of last week. Against Asean currencies, the ringgit was traded lower. The local note was down against the Singapore dollar to 3.3186/3228 from 3.3114/3182, and narrowed versus the Indonesian rupiah to 261.8/262.3 from 260.6/261.2 previously. It weakened versus the Thai baht to 13.0668/0886 from 13.0302/0609 and declined against the Philippine peso at 7.52/7.53 from 7.47/7.49 on last Friday. -- Bernama
Daily Express
12-07-2025
- Business
- Daily Express
Ringgit forecast to trade between 4.24-4.26 vs US dollar next week
Published on: Saturday, July 12, 2025 Published on: Sat, Jul 12, 2025 By: Bernama Text Size: Kuala Lumpur: The ringgit is expected to remain volatile next week, moving in the range between 4.24 and 4.26 against the US dollar, an analyst said. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that apart from the United States (US) tariff, the next key question is whether the Federal Reserve (Fed) would cut the interest rates. On that note, he said key data points would be the US Consumer Price Index (CPI) for June. Thus far, the inflation rate has been quite manageable during the 90-day pause period. 'Obviously, the full implementation of reciprocal tariffs on August 1 would result in higher inflation, which could lead to the need to keep the Federal Fund Rate (FFR) steady as an ideal policy decision. 'The US dollar index (DXY) has been gradually climbing and therefore, emerging market currencies, including the ringgit, could stay on the low side,' Mohd Afzanizam said. Meanwhile, SPI Asset Management managing partner Stephen Innes also said the ringgit is expected to trade within a narrow range ahead of the release of the US CPI next week, a key economic event likely to shape market direction and the Fed policy expectations. The upcoming US inflation report, due Tuesday, would be closely watched by financial markets as it could offer clear signals on the path of interest rates, he said. Innes said markets are particularly focused on the core CPI month-on-month figure, with 0.3 per cent seen as the critical threshold. 'A softer-than-expected reading could revive hopes for a September rate cut by the Fed, potentially leading to a pullback in the US dollar and offering the ringgit some relief,' Innes said. However, he cautioned that a stronger print, particularly at 0.4 per cent or higher, would likely shift market expectations toward a more hawkish Fed, sparking renewed dollar strength. 'In that scenario, the US dollar-ringgit pair could climb toward 4.2700, although any initial spike may be short-lived if profit-taking emerges,' he noted. He projected the ringgit to trade within a tactical range of 4.2400 to 4.2650, with market positioning expected to tighten further. 'For now, the ringgit remains a passenger in a vehicle driven by US macro outcomes -- not a driver in its own right,' Innes added. On a Friday-to-Friday basis, the ringgit ended the week lower against the greenback, closing at 4.2475/2525 from 4.2180/2260 previously. The local note traded mostly higher against a basket of major currencies. The ringgit appreciated vis-a-vis the Japanese yen to 2.8893/8929 from 2.9225/9282, and increased against the British pound to 5.7524/7592 from 5.7601/7710 last Friday. However, it marginally fell versus the euro to 4.9679/9737 from 4.9675/9770 at the end of last week. Against ASEAN currencies, the ringgit was traded lower. The local note was down against the Singapore dollar to 3.3186/3228 from 3.3114/3182, and narrowed versus the Indonesian rupiah to 261.8/262.3 from 260.6/261.2 previously. It weakened versus the Thai baht to 13.0668/0886 from 13.0302/0609 and declined against the Philippine peso at 7.52/7.53 from 7.47/7.49 on last Friday. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Bloomberg
13-05-2025
- Business
- Bloomberg
Bloomberg Intelligence: Softer Than Expected Inflation Points to Muted Tariff Fallout
Watch Alix and Paul LIVE every day on YouTube: Bloomberg Intelligence hosted by Paul Sweeney and Alix Steel Today's Podcast Features are: Ira Jersey, Bloomberg Intelligence Chief US Interest Rate Rate Strategist, discusses U.S CPI data. US inflation rose by less than forecast in April amid tame prices for clothing and new cars, suggesting little urgency so far by companies to pass along the cost of higher tariffs to consumers. Sarah Ponczek, Financial Advisor at UBS Private Wealth Management, discusses her outlook for the markets. The stock market rallied, wiping out losses for the year, on speculation that trade war tensions are cooling, with the S&P 500 rising 0.9% and the Nasdaq 100 climbing 1.7%. Glen Losev, Bloomberg Intelligence Senior Equity Analyst, discusses UnitedHealth earnings. UnitedHealth Group Inc. unexpectedly replaced its chief executive and suspended earnings guidance, raising increasing questions over how the company once regarded as a safe bet by investors has got its cost predictions so wrong. Anurag Rana, Bloomberg Intelligence Technology Analyst, discusses Microsoft saying it will cut thousands of workers with a focus on reducing layers of management. The planned terminations will amount to less than 3% of total headcount, a spokesperson said. They will occur across geographies, employee levels and include LinkedIn, the spokesperson added.
