In a global financial upswing, stocks rose sharply following the release of U.S. consumer price data that quelled prevailing inflation fears. This data came on the heels of a temporary trade truce between Washington and Beijing, providing markets with a much-needed respite from escalating tariff tensions.
U.S. equities, including the S&P 500 and Nasdaq 100, glimpsed near-record highs, catalyzed by promising tech earnings and prospects for rate cuts. The U.S. consumer price index’s modest rise of 2.7% in July, compared to the anticipated 2.8%, further amplified market optimism, easing anxieties about stagflation.
Asian equities likewise flourished, buoyed by a pause in tariffs on Chinese imports, while European and Japanese markets reflected relief from the tariff standstill. Meanwhile, commodities and currency markets reacted diversely, with the U.S. dollar dipping slightly against the euro and yen, and gold prices ticking upwards from Monday’s drop.
(With inputs from agencies.)