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U.S. stock indexes are ticking higher on Wednesday following a better-than-expected update on inflation across the country. The S&P 500 was up 0.2% in early trading and approaching its all-time high set last week.
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24/7 Wall St. on MSNStock Market Live July 16: Surprisingly Mild Inflation Report Drives S&P 500 (VOO) HigherLive Updates Live Coverage Updates appear automatically as they are published. Oil Cools Off 9:38 am Citigroup downgraded a pair of oil refinery stocks this morning, cutting both Valero (NYSE: VLO) and Phillips 66 (NYSE: PSX) to neutral.
The Dow fell 436 points. Nvidia rallied on easing export restrictions.
A weaker U.S. dollar may fundamentally benefit some areas of the stock market, but “it could also potentially drive higher import costs, pressure consumers and flow through to inflation,” according to a note Thursday from Morgan Stanley Wealth Management.
Inflation is up, stocks are down, and more tariffs are on their way. Trump wants interest rates to come down but the direction of travel is making it less likely that the Fed will deliver the cuts he wants. It’s not clear whether Trump can extract himself from the policy cycle he has created.
Value stocks will outperform growth stocks in coming months if inflation heats up.
JPMorgan, Wells Fargo lead the banks whose quarterly results may offer clues on how consumers and companies fared during a volatile period. The S&P 500 climbed 0.1%, and the Nasdaq rose 0.3% to a record.
Tech stocks were an outlier, though, and the Nasdaq composite rose 0.2% to set another record thanks to Nvidia, the market’s most influential stock.