U.S. Stock Markets React to Economic Data and Trade Developments

NEW YORK, NY – U.S. stock markets edged lower on Tuesday following the release of inflation data that met economists’ expectations. The consumer price index (CPI) for June rose 0.3% from the previous month, leading to an annual inflation rate of 2.7%. Excluding food and energy, the core CPI climbed 0.2%, reflecting a 12-month increase of 2.9%.

The 10-year Treasury yield fell about three basis points, settling at 4.401%. Analysts note that yields and prices have an inverse relationship, making these changes significant for investors. The S&P 500 futures rose 0.3% while Nasdaq 100 futures jumped 0.6%. Meanwhile, Dow Jones futures dipped by 27 points, or 0.1%.

Investors are closely monitoring comments from White House National Economic Council Director Kevin Hassett. On Sunday, Hassett suggested the Trump administration may consider the authority to dismiss Federal Reserve Chair Jerome Powell, although Trump has stated he does not intend to fire Powell. Hassett’s remarks have stoked discussions about the administration’s intentions regarding the Federal Reserve.

On the trade front, Nvidia announced its intention to restart chip sales to China after receiving assurances from the U.S. government. This decision comes after a ban was imposed earlier this year by the Trump administration due to tightened export controls.

Additionally, the ongoing discussions surrounding tariffs remain a focal point for investors, with expectations for the core CPI to rise 3% year-over-year, compared to 2.8% in June. Deutsche Bank strategist Jim Reid highlighted the importance of monitoring tariff-related inflation, noting potential impacts on consumer goods.

In the Gulf region, major stock markets saw early gains on Tuesday, reflecting a positive investor outlook ahead of anticipated U.S. inflation data. Notably, Dubai’s main share index rose 0.7%, boosted by strong performances from top lender Emirates NBD and developer Emaar Properties. Abu Dhabi’s index also climbed 0.7% as Abu Dhabi Commercial Bank reported a significant profit increase.

As trading continues, market participants remain vigilant regarding economic data releases and their implications for future Federal Reserve policy decisions.