The S&P 500 Index (SPX) remained unchanged, while the Dow Jones Industrials Index (DOWI) fell by 0.55%, and the Nasdaq 100 Index (IUXX) increased by 0.51%. September E-mini S&P futures (ESU25) rose by 0.02%, and September E-mini Nasdaq futures (NQU25) went up by 0.57% following a favorable core CPI print of +0.2% m/m. Expectations for a Federal Reserve rate cut in September dropped to 58% from 65%, as the 10-year T-note yield rose by 4.8 basis points, with the 30-year T-bond yield surpassing 5% for the first time in six weeks.
The June US CPI rose by 0.3% m/m, slightly below expectations of 0.4%, while the year-over-year figure increased to 2.7%, surpassing the anticipated 2.6%. The core CPI year-over-year increased to 2.9%, in line with expectations. The expectation for a 25 basis point Fed rate cut was unchanged at 3% for the July meeting, but trimmed to 58% for the September meeting. The July Empire manufacturing index reported at 5.5, significantly better than the expected -9.2.
