Bonds & Stocks
A cooler-than-estimated inflation reading spurred gains in both stocks and bonds, easing concern about the potential for imminent Federal Reserve rate hikes amid a resurgence in oil prices. S&P 500 futures rose 0.3%. The yield on 10-year Treasuries declined six basis points to 4.57%.
Economy
US consumer prices declined in June for the first time in six years and a key gauge of underlying inflation was little changed, taking some pressure off the Federal Reserve to raise interest rates. The consumer price index fell 0.4% from May, dragged down by the biggest decline in gasoline prices since 2022, according to Bureau of Labor Statistics data out Tuesday. Excluding food and energy, the index was flat from the prior month.
World
The interim peace between the US and Iran effectively collapsed after American forces reimposed a naval blockade and launched another wave of airstrikes, while Tehran attacked more oil tankers sailing through the Strait of Hormuz.