How US July CPI Release Impacts Stocks

London: 11 August 2023 (TraderMade): The US Bureau of Labor Statistics announced the inflation rate and Consumer Price Index at 12:30 PM UTC. The investor community digests the data as inflation raised at a rate of 3.2% in July. This is lower than the economists expected earlier.

Experts provide mixed reactions over the Fed's decision on interest rate hikes. As headline and core inflation decline, experts anticipate that the Fed may choose to pause interest rates in September.

The inflation rate and CPI release brought a sigh of relief to the US stock markets. S&P 500 closed at 4468.83 with a 0.25% rise. Similarly, the Dow Jones Industrial Average reached 35,569.71 and closed at 35123.36 on 10 August. Nasdaq Composite traded at 13940.54 at 1005 GMT and closed at 13722.02 (as of 10 August).

Some experts indicate that the rally emphasizing 'no recession' in stock markets may be in its concluding stage. Economists insist that investors in stocks and related instruments should prepare for a muted return till the end of this year. Recently, Fitch downgraded the US credit rating from AAA to AA+. Secondly, economists anticipate a US recession shortly.

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