S&P 500 Gains 0.4%, Nasdaq Rises 1.1% on Soft Inflation Data

On Monday (July 14), the S&P 500 and Nasdaq ended higher as soft consumer inflation data eased concerns about interest rate hikes, with the S&P 500 gaining 0.4% and the Nasdaq 100 rising 1.1%. The Dow Jones Industrial Average ended flat.

The annual consumer price inflation rate moderated to 3.5% in June, marking the first decline in six years and sharper than the 0.2% monthly decrease and 3.8% annual rate anticipated by economists. Following the data, the likelihood of a rate increase at the July meeting fell sharply to 17%, down from 42% just a day earlier, though market participants continue to anticipate a hike in September with nearly 60% probability of a quarter- to half-point increase.