Wall Street Gains on Inflation Data and Rate Cut Hopes

Wall Street's main indexes saw a modest rise on Tuesday after the inflation figures met expectations for July, setting the stage for a possible Federal Reserve interest rate cut next month. The Consumer Price Index (CPI) reflected a 0.2% increase month-on-month, falling slightly short of economists' annual projections, prompting President Trump to renew calls for rate reductions.

Despite concerns over rising inflation from tariffs, optimism prevailed as market participants anticipated future rate cuts and welcomed a temporary tariff truce between the U.S. and China, sparing both from immediate hefty duties. Short-term Treasury bonds signaled declining rate expectations, with an 88.8% chance of a 25 basis point cut in September.

The day ended with the Dow Jones gaining 163.16 points and the Nasdaq setting a new record, buoyed by robust tech sector earnings. Meanwhile, ahead of key personnel decisions, E.J. Antoni's nomination for Bureau of Labor Statistics commissioner remained a focal point. Advancing stocks outpaced decliners, supported by significant inflows into U.S. stocks, the highest in two years.

(With inputs from agencies.)