The latest consumer price index showed a slight increase in July, but annual growth has cooled, leading traders to lower expectations for a Federal Reserve rate hike in September. This is significant as it may affect market sentiment and investment strategies.
Energy and airline prices continue to rise due to supply shocks related to the Iran conflict, while lettuce prices have plummeted due to a cyclospora outbreak. In corporate news, Cerebras reported disappointing second-quarter revenue despite raising its full-year guidance, causing its shares to drop 15%. CEO Andrew Feldman noted strong demand for their AI chips, which are priced at a premium.
Conversely, Cisco exceeded earnings expectations but saw its shares decline by 5.9%. Additionally, Trump Media & Technology Group faces legal challenges regarding its Truth API service, raising concerns among retail investors about transparency and potential conflicts of interest.
Lastly, Mark Walter's sale of his majority stake in the Los Angeles Lakers to Joshua Kushner and Bob Iger values the team at $12.5 billion, reflecting significant growth since Walter's acquisition less than a year ago