​US stocks edged higher on Tuesday, driven by fresh inflation data and President Trump's announcement of his nominee for the Bureau of Labor Statistics. The Dow Jones Industrial Average (DJI) gained approximately 1%, or over 450 points. The S&P 500 (GSPC) climbed 0.9%, while the Nasdaq Composite (IXIC) jumped 1.1%, with both the S&P 500 and Nasdaq on track for record closes.

Investors digested the July Consumer Price Index (CPI) data, which showed inflation easing, coupled with Trump's pick to head the Bureau of Labor Statistics, fueling optimism that the Federal Reserve may take a more dovish stance soon.

Market Movers:

  • ​Nvidia (NVDA) -0.13%: Nvidia saw a slight dip of 0.13% despite ongoing momentum in the tech sector. Investors are watching developments around its chip sales to China. Reports surfaced that Nvidia agreed to share 15% of its revenue from certain chip sales with the US government. This deal, while allowing the company to continue selling older chips to China, raised concerns about the future impact on Nvidia's profitability.
  • Intel (INTC) +1.1%: Intel’s stock rose over 1% after CEO Lip-Bu Tan met with President Trump. Following the meeting, Trump posted favorable comments about Intel’s leadership and business success, boosting investor sentiment. The meeting followed Trump’s earlier call for Tan’s resignation, but the discussion seemed to restore some confidence in the semiconductor giant.
  • Bitmine Immersion (BMNR) +5%: Bitmine Immersion Technologies surged 5% as Ethereum (ETH-USD) rose above $4,400. The company announced plans to issue $20 billion worth of stock to increase its Ethereum holdings, aiming to acquire 5% of the world’s outstanding ETH tokens. This bold move comes after the company’s stock skyrocketed 14% on Monday, showcasing continued investor enthusiasm in crypto-related stocks.
  • C3.ai (AI) -26.5%: Shares fell by 26.5% following disappointing earnings and a lowered revenue forecast. The AI software firm cited internal restructuring as a key factor for the weak performance. Investors were particularly concerned about the company's leadership transition, as CEO Tom Siebel’s health issues prompted the company to search for a new CEO, leading to heightened uncertainty.

​Key Inflation Data Fuels Fed Rate Cut Bets

The latest Consumer Price Index (CPI) report for July showed that "core" inflation, which excludes volatile food and energy costs, increased 3.1% year-over-year, up from June’s 2.9%. While this indicates that goods inflation is no longer being offset by easing services inflation, the headline CPI came in at 2.7%, matching June’s level and coming in slightly softer than expected.

This data points to a potential slowdown in inflationary pressures, sparking fresh bets that the Federal Reserve will cut interest rates in September. Approximately 94% of traders are anticipating a rate cut, according to the CME FedWatch Tool. The lower-than-expected CPI reading provides additional backing for dovish policy measures, which have already been priced into the market by investors. Analysts believe the data strengthens the case for a gradual approach from the Fed, with some expecting a 25-basis-point rate cut.

​Trump’s Nominee and Tariff Talks Stir Market Sentiment

In addition to inflation data, President Trump’s nomination of E.J. Antoni to lead the Bureau of Labor Statistics has contributed to the overall positive sentiment in the market. Antoni’s appointment is seen as part of the broader economic reshuffling by the Trump administration as it seeks to assert greater control over economic data reporting. The news also comes amid ongoing tariff negotiations, with Trump granting a 90-day extension on certain China tariffs as both sides continue talks.

The tariff extension has provided some relief to the markets, as investors were concerned about the immediate implementation of additional duties that could stoke inflation further. However, the situation remains fluid, and the broader trade landscape is likely to continue to impact market movements in the coming months.

​Looking Ahead

Looking ahead, investors will closely watch the Producer Price Index (PPI) data set to be released later this week, along with retail sales figures on Friday. These reports will provide further insight into the state of inflation and consumer spending. Additionally, the ongoing debate over Federal Reserve policy will remain a central topic, especially as markets continue to price in expectations for rate cuts in September. With geopolitical tensions, tariffs, and inflation still in the spotlight, the market will likely experience continued volatility as traders assess these complex variables.