On Tuesday, the Consumer Price Index revealed a 2.7% rise in June compared to the previous year, surpassing May's 2.4% increase. The stock market reacted negatively, with the S&P 500 decreasing by 0.4% and the Dow by nearly 1%. The volatility in the markets reflects investors' concerns over President Trump's impending tariff deadline of August 1. Despite strong earnings from banks, stocks exhibited mixed performance as tariffs continued to impact consumer goods and inflation forecasts remained uncertain, particularly with Powell's warnings regarding potential price increases from tariffs.
The Labor Department released new data on its Consumer Price Index, showing that consumer prices rose 2.7% in June from a year earlier, and faster than May's increase of 2.4%.
Though CPI has been trending downward since a peak in 2022, a reversal could prolong cuts, especially with Federal Reserve Chair Jerome Powell warning that Trump's tariffs are likely to negatively impact inflation.
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