This morning's encouraging inflation report has Wall Street rotating out of tech stocks
This morning's encouraging inflation data did not bring the stock market breakout investors had hoped for, with only the Dow eking out a win. The S&P 500 and Nasdaq both closed lower despite nabbing record highs earlier in the day, both snapping a seven-day win streak and the latter logging its worst single-session decline since late 2022.
As prospects of an interest rate cut in September increased to 85% today per CME's FedWatch tool, Wall Street swiftly rotated out of the megacap tech stocks that had been propping up the stock market for the last 12 months.
Continue reading for more on today's market, including:
- Keep tabs on these 3 China-based stocks.
- Get ready for earnings season with these options strategies.
- Plus, DRI downgraded; Costco hikes prices; and a Bitcoin-based stock split.
5 Things to Know Today
- The U.S. budget deficit is down 9% year-over-year (MarketWatch)
- Battle for control of the ever-changing Artic is heating up. (Bloomberg)
- Today's DRI downgrade could be just the start.
- Call traders play Costco's big change.
- Another stock split, but this time in the tech world.
Gold Makes a Run at Records
Oil prices got a lift from the lower-than-expected consumer price index (CPI) report. August-dated West Intermediate (WTI) crude added 52 cents, or 0.6%, to settle at $82.62 per barrel.
Gold prices broke out today, bouncing in response to interest rate cut hopes for September. August-dated gold added $42.20, 1.8%, to settle at $2,421.90 an ounce for the day, a chip shot from its May 20 intraday record of $2,454 and closing high of $2,438.50.