U.S. Stock Market: S&P 500 rebounds as U.S. inflation cools, easing interest rate hike concerns
U.S. stocks rose after data released earlier showed the U.S. consumer price index fell for the first time in six years in June, easing market concerns about the Federal Reserve raising interest rates. The S&P 500 ended up 0.4%, reversing Monday's losses. As South Korea’s leading memory chip stocks rebound, 100 index rose 1.1%, with gains in SK Hynix and Samsung Electronics driving U.S. peers higher. Data from the U.S. Bureau of Labor Statistics show that the consumer price index fell 0.4% month-on-month in June due to the largest drop in gasoline prices since 2022. Investors are currently awaiting the release of the Producer Price Index (PPI) on Wednesday. Subadra Rajappa, head of U.S. research at the bank, said, "I would pay more attention to the PPI data released on Wednesday because it will affect the core PCE released later this month." Traders are also watching comments from Federal Reserve Chairman Kevin Warsh during congressional testimony. Warsh says Fed policymakers are concerned about Zero tolerance for inflation and reiterated its commitment to curb high inflation that has lasted for five years. In terms of geopolitics, US President Trump abandoned his plan to impose a 20% compensation fee on goods transported through the Strait of Hormuz. The interim peace agreement between the United States and Iran has actually collapsed, and the US military has re-imposed a naval blockade and launched a new round of attacks on Iran. rose 2.5% after the bank reported its highest-ever quarterly profit and revenue from its stock trading business far exceeded analysts' expectations. International Business Machines Corp. shares plunged 25% after the company reported preliminary quarterly sales that fell short of analysts' expectations. As of the close, the S&P 500 index rose 0.4% to 7,543.59 points; The industrial average index was basically unchanged at 52508.27 points; The Nasdaq Composite Index rose 0.9% to 26107.01 points; The Nasdaq 100 index rose 1.1% to 29,586.29 points; The Russell 2000 index rose 0.4% to 2,964.764 points.