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US markets end higher amid softer inflation data

13 Aug 2025 Evaluate

The US markets ended higher on Tuesday with the Nasdaq and the S&P 500 closing to their new record highs. The strength on Wall Street came following the release of the Labor Department's closely watched report on consumer price inflation in the month of July. The Labor Department said its consumer price index rose by 0.2 percent in July after climbing by 0.3 percent in June. The modest increase matched expectations. The report also said the core consumer price index, which excludes food and energy prices, climbed by 0.3 percent in July after rising by 0.2 percent in June. The increase by core prices was also in line with estimates. Meanwhile, the annual rate of growth by core consumer prices accelerated to 3.1 percent in July from 2.9 percent in June. Street had expected the pace of growth to inch up to 3.0 percent. Despite, the faster than expected annual core price growth, traders seemed optimistic about interest rate cut by Federal Reserve. 

On the sectoral front, significant strength has been seen in Airline stocks, reflected by NYSE Arca Airline Index soaring by 9.3 percent to its best closing level in five months. Besides, considerable up move has been seen in semiconductor stocks with Philadelphia Semiconductor Index surging 3.0 percent.

Dow Jones Industrial Average shot up 483.52 points or 1.1 percent to 44,458.61, Nasdaq surged 296.50 points or 1.39 percent to 21,681.90 and S&P 500 jumped 72.31 points or 1.13 percent to 6,445.76.

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