Bonds & Stocks
Stocks rose and short-dated bond yields fell after a roughly in-line inflation reading bolstered speculation the Federal Reserve will be able to cut interest rates in September. The S&P 500 added 0.4%. Treasuries initially climbed across maturities, but pared those moves.
Economy
Underlying US inflation accelerated in July to the strongest pace since the start of the year, though a tepid rise in goods prices tempered concerns about tariff-driven price pressures. The core consumer price index, excluding the often volatile food and energy categories, increased 0.3% from June, according to Bureau of Labor Statistics data out Tuesday. That was in line with economists’ forecasts. On an annual basis, it picked up to 3.1%.
World
India and China are set to resume direct flight connections as soon as next month, people familiar with the negotiations said, as the world’s two most populous countries seek to reset their political ties.