June CPI Misses Expectations, IBM Plunges 24%, Oil Surges Past $80
On Tuesday, U.S. stock markets showed mixed results after June’s inflation data came in lower than expected. The S&P 500 edged up by 0.3%, and the Nasdaq climbed 0.6%, but the Dow dipped by 0.2%. The consumer price index for June fell by 0.4% month-over-month, keeping the annual inflation rate at 3.5%. Data from CME FedWatch indicated that the chance of a Federal Reserve rate hike in July dropped to 16%-17% from 42%. Today, Federal Reserve Chair Kevin Warsh will testify before Congress. IBM's stock tumbled by 24% due to concerns about a slowdown. Oil prices jumped above $80 per barrel after President Trump’s blockade on Iranian ships. Chip stocks gained, while JPMorgan Chase, Wells Fargo, and Citigroup saw declines after their earnings reports.
Key facts
- June CPI dropped 0.4% month-over-month, annual rate 3.5%.
- Fed rate hike probability for July fell to 16%-17% from 42%.
- IBM stock fell 24% on weak Q2 outlook.
- U.S. crude oil passed $80 per barrel.
- Brent crude rose 3% to over $86.
- President Trump restored blockade on Iranian vessels in Strait of Hormuz.
- VanEck Semiconductor ETF rose over 2%.
- Goldman Sachs stock rose 4% on earnings beat.
Entities
Institutions
- Federal Reserve
- CME
- IBM
- Regan Capital
- CNBC
- VanEck Semiconductor ETF
- Teradyne
- Lam Research
- Micron Technology
- Applied Materials
- JPMorgan Chase
- Wells Fargo
- Citigroup
- Goldman Sachs
- S&P 500
- Dow Jones Industrial Average
- Nasdaq
Locations
- United States
- Strait of Hormuz
Sources
- SCMP Culture —
- Quartz —