Marketbites: Cooler-Than-Expected June Inflation
MARKET PERFORMANCE:
Portfolio Manager Commentary:
Stocks rose Wednesday after new data raised hope that the Federal Reserve can bring down inflation without pushing the U.S. economy into a recession. The S&P 500 reached a new high for 2023. Bank stocks jumped on Wednesday. Citigroup and Goldman Sachs saw shares climb 1.8% and 1.7%, respectively. Regional banks also saw gains, with Comerica adding 3.1%, and Zions Bancorporation jumping 2.8%.
The consumer price index rose 3% on a year-over-year in June. Economists polled by Dow Jones expected a 3.1% increase. “I think it’s a good report. Inflation is going the way that the Federal Reserve wants it to go. But I don’t think we’re ready to say that they’re going to be able to cut rates,” said Megan Horneman, chief investment officer at Verdence Capital Advisors.
Chart of the Day:
Inflation cooled last month to its slowest pace in more than two years, giving Americans relief from a painful period of rising prices and boosting the chances that the Federal Reserve will stop raising interest rates after an expected increase this month.
The consumer-price index climbed 3% in June from a year earlier, the Labor Department said Wednesday, sharply lower than the recent peak inflation rate of 9.1% in June 2022, when gasoline prices hit a U.S. record average of $5 a gallon.
Source: WSJ
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