New York's three major stock indexes opened higher across the board, helped by a U.S. consumer price index (CPI) that came in below expectations.
As of 9:52 a.m. on the 14th (local time), on the New York Stock Exchange, the Dow Jones Industrial Average rose 77.33 points, or 0.15%, to 52,575.97. The Standard & Poor's (S&P) 500 climbed 23.77 points, or 0.32%, to 7,539.11, and the Nasdaq composite gained 158.33 points, or 0.61%, to 26,031.51.
With June CPI coming in below market expectations, hopes grew that the Federal Reserve (Fed) will be cautious about additional tightening. According to the Labor Department, June CPI fell 0.4% from the previous month on a seasonally adjusted basis. It not only missed the market forecast for a 0.1% decline but was also the largest drop since a 0.8% fall in April 2020.
Core CPI, which excludes the volatile food and energy categories, rose 2.6% from a year earlier. The pace was the same as the previous month but fell short of the market forecast of 2.8%.
Based on CME FedWatch from the Chicago Mercantile Exchange (CME), the fed funds futures market reflected an 87.7% probability that rates will be held steady at the Federal Open Market Committee (FOMC) meeting on the 29th. That was up sharply from 58.3% the previous day.
Skyler Winand, chief information officer (CIO) at Regan Capital, said, "The weaker-than-expected CPI print suggests the inflation spike sparked by the Iran war is abating, but it may offer only temporary relief because tensions between the United States and Iran have escalated in recent days."
He added, "While the weak inflation data is likely to keep the Fed on hold for the time being and reduce the odds of a rate hike, investors should remember that almost every comment Chair Washi has made during a short tenure so far has been hawkish."
Industrials and utilities were strong, while health care and consumer discretionary were weak. IBM plunged 23.60% after its second-quarter results missed market expectations. As corporations focused on data center investment, demand for IBM's mainframes and software slowed, which was cited as the backdrop for the weak results.
European stocks were mixed. The Euro Stoxx 50 was up 0.11% at 6,277.78. Germany's DAX and France's CAC 40 fell 0.27% and 0.21%, respectively. Britain's FTSE 100 rose 0.16%.
International oil prices rose. At the same time, front-month West Texas Intermediate (WTI) crude for August 2026 delivery was up 2.35% at $79.98 a barrel.