Stock Market Update
15-Jul-25 16:40 ET
Bearish action following June CPI
Dow -436.36
at 44023.29,
Nasdaq +37.47
at 20677.80,
S&P -24.80
at 6243.76
[BRIEFING.COM] The stock market opened with strength amid news that NVIDIA (NVDA 170.55, +6.48, +4.0%) would resume the sale of its H20 chips in China, but rising interest rates following the June CPI report resulted in selling pressure that kept the S&P 500 and broader market on its heels for most of the session.
Supported by NVIDIA’s gain and strength in Advanced Micro Devices (AMD), which is also aiming to resume AI chip sales in China, the Nasdaq Composite closed at another record high.
The S&P 500 information technology sector (+1.3%) was the only sector to finish in the green today, as the news involving NVIDIA and AMD was bolstered by reports of heavy investment in AI data centers. Alphabet (GOOG 183.10, +0.29, +0.2%) and CoreWeave (CRWV 140.59, +8.22, +6.2%), for instance, both made AI infrastructure investment announcements.
The strength in chipmakers saw the PHLX Semiconductor Index finish with a gain of 1.3%.
The other ten S&P 500 sectors could not shake off the impact of rising interest rates following the 8:30 ET release of the June CPI.
Total CPI was up 0.3% month-over-month in June and core CPI, which excludes food and energy, was up 0.2%. The latter was lower than expected and contributed to the stock market's early strength (the S&P 500 briefly touched a new intraday high at 6302), but a closer look at the report revealed pockets of inflation in several areas that stirred concerns about tariff-driven inflation.
Apparel prices, for example, increased 0.4% after being down 0.4% in May, while household furnishings and supplies prices increased 1.0% following a 0.3% increase in May.
Ultimately, the report was not good enough to suppress concerns over tariff-related inflation, which in turn left the market thinking the Fed is going to remain in a wait-and-see mode.
The financials sector (-1.7%) finished near the bottom of today's action, with several major financial companies, such as JPMorgan Chase (JPM 286.55, -2.15, -0.7%) and BlackRock (BLK 1046.16, -65.30, -5.9%), facing some "sell the news" pressure despite surpassing earnings expectations. Citigroup (C 90.72, +3.22, +3.7%) was an exception to the upside. Wells Fargo (WFC 78.86, -4.57, -5.5%) was a downside outlier, disappointing with its net interest income guidance.
Today's losses were broad-based. Roughly 90% of S&P 500 stocks declined today. Although a few mega-cap tech names helped mask further losses, a lack of positive headlines kept the market in a bearish state following the June CPI report. The Russell 2000 declined 2.0%, the S&P Midcap 400 index dropped 1.8%, and the equal-weighted S&P 500 slumped 1.4%.
The Treasury market was not unscathed either. The 10-year note yield settled up six basis points at 4.49%.
U.S. Treasuries traded calmly overnight following the release of a trove of economic data out of China that featured a stronger-than-expected Q2 GDP print and June retail sales, fixed asset investment, and industrial production data that was mixed relative to expectations.
The calmness faded, however, after the release of the June CPI report at 8:30 a.m. ET. There was selling interest across the curve, rooted in the sticky inflation and the notion that the Fed will view today's report as a basis to continue with a wait-and-see policy mindset.
The probability of at least a 25 basis point rate cut to 4.00-4.25% at the September FOMC meeting slipped to 54.0%, versus 62.6% a day ago, according to the CME FedWatch Tool. The dollar rallied after the report, mirroring the notion that rates may be sticking higher for longer. The U.S. Dollar Index was up 0.6% to 98.64.
Boston Fed President Susan Collins (voting FOMC member) echoed an “actively patient” approach to monetary policy in a speech today.
Supported by NVIDIA’s gain and strength in Advanced Micro Devices (AMD), which is also aiming to resume AI chip sales in China, the Nasdaq Composite closed at another record high.
The S&P 500 information technology sector (+1.3%) was the only sector to finish in the green today, as the news involving NVIDIA and AMD was bolstered by reports of heavy investment in AI data centers. Alphabet (GOOG 183.10, +0.29, +0.2%) and CoreWeave (CRWV 140.59, +8.22, +6.2%), for instance, both made AI infrastructure investment announcements.
The strength in chipmakers saw the PHLX Semiconductor Index finish with a gain of 1.3%.
The other ten S&P 500 sectors could not shake off the impact of rising interest rates following the 8:30 ET release of the June CPI.
Total CPI was up 0.3% month-over-month in June and core CPI, which excludes food and energy, was up 0.2%. The latter was lower than expected and contributed to the stock market's early strength (the S&P 500 briefly touched a new intraday high at 6302), but a closer look at the report revealed pockets of inflation in several areas that stirred concerns about tariff-driven inflation.
Apparel prices, for example, increased 0.4% after being down 0.4% in May, while household furnishings and supplies prices increased 1.0% following a 0.3% increase in May.
Ultimately, the report was not good enough to suppress concerns over tariff-related inflation, which in turn left the market thinking the Fed is going to remain in a wait-and-see mode.
The financials sector (-1.7%) finished near the bottom of today's action, with several major financial companies, such as JPMorgan Chase (JPM 286.55, -2.15, -0.7%) and BlackRock (BLK 1046.16, -65.30, -5.9%), facing some "sell the news" pressure despite surpassing earnings expectations. Citigroup (C 90.72, +3.22, +3.7%) was an exception to the upside. Wells Fargo (WFC 78.86, -4.57, -5.5%) was a downside outlier, disappointing with its net interest income guidance.
Today's losses were broad-based. Roughly 90% of S&P 500 stocks declined today. Although a few mega-cap tech names helped mask further losses, a lack of positive headlines kept the market in a bearish state following the June CPI report. The Russell 2000 declined 2.0%, the S&P Midcap 400 index dropped 1.8%, and the equal-weighted S&P 500 slumped 1.4%.
The Treasury market was not unscathed either. The 10-year note yield settled up six basis points at 4.49%.
U.S. Treasuries traded calmly overnight following the release of a trove of economic data out of China that featured a stronger-than-expected Q2 GDP print and June retail sales, fixed asset investment, and industrial production data that was mixed relative to expectations.
The calmness faded, however, after the release of the June CPI report at 8:30 a.m. ET. There was selling interest across the curve, rooted in the sticky inflation and the notion that the Fed will view today's report as a basis to continue with a wait-and-see policy mindset.
The probability of at least a 25 basis point rate cut to 4.00-4.25% at the September FOMC meeting slipped to 54.0%, versus 62.6% a day ago, according to the CME FedWatch Tool. The dollar rallied after the report, mirroring the notion that rates may be sticking higher for longer. The U.S. Dollar Index was up 0.6% to 98.64.
Boston Fed President Susan Collins (voting FOMC member) echoed an “actively patient” approach to monetary policy in a speech today.
