FX.co ★ US Futures Rally after Inflation

US stock futures rose on Tuesday as inflation data slightly undercut projections, alleviating concerns about price hikes linked to President Trump's tariff measures. Futures on the S&P 500 increased by 0.6%, while those on the Dow climbed over 250 points, and the Nasdaq 100 rose by 0.8%. The Consumer Price Index (CPI) for July recorded an annual increase of 2.7%, whereas forecasts had anticipated a 2.8% rise. Meanwhile, the core CPI saw a 3.1% rise, just surpassing expectations. This softer CPI data enhanced prospects for interest rate cuts by the Federal Reserve, with market participants now reflecting a 91% likelihood of a reduction in rates for September, an increase from 85% prior to the report. Additionally, there is an increased likelihood of rate cuts for October and December. In corporate news, Intel's share value appreciated by 4% after President Trump commended CEO Lip-Bu Tan following previous critiques. Furthermore, Circle's shares surged by 11%, fueled by robust second-quarter revenue growth.