Overview
- June consumer inflation cooled to a 3.5% year‑over‑year rate on Tuesday, below forecasts and helping ease near‑term odds of a Fed rate hike.
- Major banks posted strong second‑quarter results, with JPMorgan, Goldman Sachs, Bank of America, Wells Fargo and Citigroup beating expectations and lifting financial stocks.
- U.S. forces conducted consecutive strikes on Iran and President Donald Trump said the U.S. would reinstate a blockade of Iranian shipping through the Strait of Hormuz, an announcement that pushed Brent crude sharply higher.
- Markets were volatile and mixed: the S&P 500 and Nasdaq trimmed losses and later rose while the Dow was held near flat after IBM plunged on weak guidance, and semiconductor and memory stocks showed sharp swings.
- Federal Reserve officials signaled they remain ready to act if inflation re‑accelerates, so traders will watch oil moves, upcoming Fed testimony and the rest of the earnings season for clues on policy and economic stress.