U.S. Stock Market Surges Midday on July 12, 2023, as June Consumer Inflation Slows
On July 12, 2023, U.S. equities soared midday following data showing consumer inflation rose less than anticipated in June, sparking optimism for a pause in Federal Reserve rate hikes.
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Highlights
- U.S. stocks rallied strongly midday on July 12, 2023, after June inflation figures came in below expectations.
- Technology stocks, favored by prospects of lower interest rates, led the gains.
- Domino’s Pizza shares surged following a partnership to feature its menu on Uber Eats and Postmates apps.
The U.S. stock market climbed sharply midday as the Labor Department reported a slower-than-expected rise in consumer inflation for June, fueling hopes that the Federal Reserve may slow its interest rate increases. The Nasdaq rose 1%, while the Dow Jones Industrial Average and S&P 500 also posted gains. Meanwhile, the 10-year Treasury yield declined significantly.
Tech giants, which typically benefit from reduced borrowing costs, saw notable advances. All FAAMG stocks closed higher. Tesla (TSLA) shares increased by 1%. Nvidia (NVDA) gained momentum following reports of discussions with UK-based Arm to become a lead investor in Arm's upcoming U.S. IPO. Broadcom (AVGO) hit record highs after UK regulators approved its acquisition of VMWare (VMW).
Retailers and homebuilders also benefited from the inflation news. Rising oil futures boosted energy companies like Chevron (CVX). Domino’s Pizza (DPZ) was the top performer in the S&P 500 after announcing a deal to list its menu on Uber Eats and Postmates food delivery platforms.
Conversely, Cisco Systems (CSCO) shares declined after a downgrade by Bank of America. Wolfe Research’s downgrade pressured transportation company RXO (RXO). Lucid Group (LCID) shares fell sharply due to weaker-than-expected Q2 vehicle deliveries. Shares of UnitedHealth Group (UNH) and other health insurers also dropped.
Gold prices climbed amid a weaker U.S. dollar, which declined against the euro, pound, and yen. Most major cryptocurrencies traded higher throughout the session.
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