The June consumer price index fell to 3.5% year-over-year, below expectations of 3.8%, and dropped 0.4% month-over-month, the largest monthly decline since 2020. The softer inflation reading relieves new Federal Reserve Chair Kevin Warsh, who had faced rising odds of a 2026 rate hike amid sticky inflation and energy-price pressures from the U.S.-Iran conflict. Shelter costs rose just 0.1%, the smallest monthly increase in five years, while used car and truck prices fell 0.6% year-over-year for a sixth straight monthly drop. Major index ETFs including the Nasdaq 100 QQQ and S&P 500 ETF SPY gained ground, along with tech stocks SanDisk, Micron, and Dell. Betting-market odds of a 2026 rate hike fell to about 53% from 73% before the data.
Micron Technology IncTech stocks lifted by lower CPI and reduced rate hike odds
Sandisk CorpTech stocks lifted by lower CPI and reduced rate hike odds
Dell Technologies IncTech stocks lifted by lower CPI and reduced rate hike odds
Chimera Investment Corporation