US Stocks-S&P 500 and Nasdaq End Higher on Cool Inflation Data, Solid Bank Earnings
SPY•Stocks end higher as inflation cools
The S&P 500 and the Nasdaq advanced on Tuesday as solid big bank results and a cooler-than-expected inflation report boosted risk appetite amid rising Middle East tensions.
A rebound in chip shares .SOX put the Nasdaq out front, while the Dow's gains were more subdued.
The Labor Department's Consumer Price Index showed inflation cooled more than analysts expected in June, largely due to abating energy price pressures amid last month's signs of progress in U.S.-Iran peace negotiations.
Fed expectations shift after CPI report
U.S. Federal Reserve Chair Kevin Warsh sat for his first congressional testimony since his confirmation, in part to lay out the central bank's plan to contain upward price pressures. Warsh's testimony occurred while the battle for control over the Strait of Hormuz has led to ramped-up airstrikes between the United States and Iran and boosted crude oil prices, reviving fears of upward price pressures.
