Strong AI earnings lift S&P 500, Nasdaq as inflation data calms rate-hike jitters - Reuters
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- S&P 500 and Nasdaq rallied on strong AI earnings, with the broader market move attributed to inflation data calming rate-hike jitters, per Reuters
- July 2026 CPI showed inflation cooling as gas prices fell, though PBS notes costs remain elevated; a cooler reading bolstered the case for the Fed to hold rates steady
Why it matters: The pairing of robust AI earnings with a disinflationary July CPI reading gives the Fed cover to hold rates — exactly what risk assets wanted — but PBS's caveat that costs remain elevated means the inflation reprieve is driven by falling gas prices, not broad-based cooling, leaving the path to a cut less certain than the rally implies.
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