The stock market displayed a mix of gains and losses during Wednesday’s session as investors navigated through the latest Consumer Price Index (CPI) data, as per Sevens Report.
The S&P 500 ultimately edged higher, closing with a modest gain of 0.38%. The day began with optimism as the headline July CPI figure came in slightly below expectations, marking the first time inflation fell below 3% since early 2021. However, the core CPI remained in line with estimates at 3.2%, more than 1% above the Federal Reserve’s 2% target, which led to a more cautious market sentiment.
The S&P 500 opened the session with a strong rally, driven by the positive headline CPI numbers. However, the in-line core CPI figure tempered enthusiasm, particularly among investors who had been hoping for a clearer signal of disinflation. This cautious tone led to a brief period of flat trading, but as the day progressed, dip buyers stepped in, pushing the S&P 500 to new weekly highs. Despite these gains, the absence of a strong bullish catalyst saw the market pull back slightly in the afternoon before settling just above 5,450.
Sector performance and trading dynamics
The market’s sector performance was mixed, with the Dow Jones Industrial Average leading the way with a 0.61% gain, while the Nasdaq remained flat, and the Russell 2000 fell by 0.52%. Financials were the standout sector, driven by strong earnings from insurance companies, particularly Progressive, which saw a 5% rally.
