TLDR
- June CPI came in at 3.5% annually, below the 3.8% forecast, easing some pressure on the Fed
- The S&P 500 rose 0.4% and the Nasdaq gained 1%; the Dow hovered near flat
- Big bank earnings from JPMorgan, Goldman Sachs, and others showed a strong quarter for Wall Street
- IBM shares dropped more than 25% after a weak earnings preview dragged on the Dow
- Oil prices edged higher as the US moved to enforce a blockade of the Strait of Hormuz
US stocks moved higher on Tuesday after a softer-than-expected inflation report gave investors something to work with. The Consumer Price Index rose 3.5% year-on-year in June, below the 3.8% forecast. Core inflation came in at 2.6%, also under the 2.8% expectation.
BREAKING: June CPI inflation falls to 3.5%, below expectations of 3.8%
Core CPI inflation falls to 2.6%, below expectations of 2.8%.
Month-over-month CPI inflation fell -0.4%, the biggest monthly drop since May 2020.
US stock market futures are surging on the news.
— The Kobeissi Letter (@KobeissiLetter) July 14, 2026
The numbers took some heat off the Federal Reserve. Markets had been pricing in rate hike bets ahead of the data, and some bond traders had increased their expectations of a move at the Fed’s July 28-29 meeting. The cooler reading gives the central bank more room to wait.
The S&P 500 gained 0.4% and the Nasdaq rose 1% by midday. The Dow Jones Industrial Average slipped less than 0.1%, caught between gains and losses throughout the session.
Technology led sector gains, though Tuesday’s move was not enough to fully recover from Monday’s selloff. The financial sector followed closely, on track to close at an all-time high.
Bank Earnings Drive Financial Sector Higher
A wave of second quarter results from major banks landed Tuesday morning. JPMorgan, Bank of America, Wells Fargo, Citigroup, and Goldman Sachs all reported results that showed a strong quarter for Wall Street profits and stock trading.
Goldman Sachs posted record earnings. As the heaviest-weighted stock in the Dow, it contributed around 477 points to the index.
Expectations going into earnings season were already high, and the banks largely delivered.
IBM Drags the Dow Lower
IBM was the worst performer in the Dow on Tuesday. A weak earnings preview sent shares sliding more than 25%, contributing a 445-point drag to the index.
That loss nearly cancelled out Goldman’s contribution, leaving the Dow stuck near the flatline for much of the day.
AI chip stocks also faced pressure. South Korea’s SK Hynix, which recently listed US shares following a successful IPO on Friday, fell further on Tuesday. A mix of rate-hike speculation, capital spending concerns, and profit-taking weighed on the sector.
Oil and Geopolitics Add to Market Uncertainty
Oil prices edged up Tuesday. Brent crude had posted its biggest single-day jump in years on Monday as markets tracked US plans to enforce a blockade of the Strait of Hormuz.
President Trump said Tuesday he was replacing 20% cargo fees announced Monday with investment deals intended to bring money into the US.
Bitcoin also moved higher earlier in the session, rising as the dollar eased ahead of the inflation data release.
The S&P 500 stood at 7,548 and the Nasdaq at 26,142 as of early afternoon trading.
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