Fed Rate Cut Inflation Easing

"This week's soft inflation data has diminished the threat of a Federal Reserve rate hike, Hathorn explains, while earnings remain supportive. And while the blue-chip Dow Jones Industrial Average closed lower for the week, the broader S&P 500 and tech-heavy Nasdaq Composite extended their weekly win streaks to three."

"U.S. inflation figures aligning with expectations and reducing the likelihood of imminent Federal Reserve rate hikes. U.S. consumer prices saw a marginal 0.1% increase in July, matching forecasts and possibly softening the case for a Fed rate hike next month."

"Producer price inflation rose 4.7% in July, below the 4.9% estimate of analysts. The reading followed mild consumer inflation data that reinforced expectations that the Federal Reserve would keep interest rates unchanged at its next meeting."

"A second consecutive month of relatively mild price increases could strengthen the case for keeping interest rates unchanged while policymakers wait for a clearer picture of the economy."

"The data reinforced hopes that the Federal Reserve would hold interest rates steady in their upcoming September meeting, propelling the index to new heights."

"A benign CPI report would strengthen the case for the Fed to stay on hold, pushing Treasury yields lower and equities higher. HSBC economists said they expect July CPI data to show 'surprising softness across many core categories, leading both headline and core CPI to undershoot consensus expectations.' Investors are increasingly pricing a scenario in which inflation continues to ease, the Fed remains patient, and earnings growth justifies elevated valuations."

"Wall Street also got some broad support from easing yields in the bond market. Treasury yields fell after a report showed that U.S. consumers paid prices for gasoline, groceries and other costs of living last month that were 3.4% higher than a year earlier. The deceleration could give the Federal Reserve more leeway to hold off on hikes to interest rates."

"The deceleration could give the Federal Reserve more leeway to hold off on hikes to interest rates. Higher rates would help keep a lid on inflation, but it would do so by making it more expensive for U.S. households and companies to borrow and forcing a slowdown in the economy. Higher interest rates also would undercut prices for stocks and other investments."

"The deceleration could give the Federal Reserve more leeway to hold off on hikes to interest rates. Higher rates would help keep a lid on inflation, but they would do so by making it more expensive for U.S. households and companies to borrow and forcing a slowdown in the economy."

"An in-line inflation reading spurred gains in both stocks and bonds, easing concern about imminent Federal Reserve interest-rate increases despite elevated oil prices. The data brought relief to Wall Street traders worried about ongoing geopolitical risks, with the S&P 500 hovering near all-time highs."