Highlights
Major stock indexes were higher Tuesday after an unexpectedly tame inflation report but gains were tempered by rising oil prices and concern about the impact of renewed war between the US and Iran. The Dow Jones industrial average was unchanged while the S&P 500 rose 0.4 percent and the Nasdaq was up 0.9 percent. Bond yields and the dollar declined while oil prices rose.
Bond yields declined on news that core US consumer price inflation was flat in June versus expectations for a small increase. That prompted investors to defer expectations for a Federal Reserve anti-inflation rate hike to later in the year or to 2027. Best performers included technology, communications services, financials, materials, and energy.
Chipmaker stocks and other momentum plays linked to the AI trade rebounded to help the Nasdaq outperform. Big banks advanced as they kicked off earnings season with upbeat quarterly results. Energy got a lift from the ongoing rally in oil prices on the latest heating up of the conflict in the Middle East.