U.S. consumer prices rose at a slower pace than expected in July, offering some relief to markets even as underlying pressures remained firm.  The Bureau of Labor Statistics reported that the Consumer Price Index (CPI) increased 2.7% year over year, just shy of the 2.8% economists had forecast. On a monthly basis, inflation climbed 0.2%, matching June’s pace and consensus estimates. However, core CPI—which strips out volatile food and energy prices—ticked up to 3.1% year over year from June’s 2.9%, overshooting the 3% projection. The monthly increase in core prices came in at 0.3%, in line with expectations. While these figures show inflation remains far below its 2022 peak, the uptick in core inflation will likely weigh on Federal Reserve discussions heading into September’s policy meeting. Energy and Food Provide Breathing Room Falling fuel costs were a key factor keeping headline inflation in check. The energy index dropped 1.1% in July, with gasoline down 2.2%, marking prices a...

The U.S. labor market faltered in July, adding just 73,000 jobs—far below expectations—and revising previous months’ estimates sharply downward. Combined, May and June job gains were slashed by a staggering 258,000, erasing what had once been seen as moderate growth and signaling a potentially more fragile economy than previously understood. July’s tepid gains mark the weakest monthly performance since late 2020, excluding periods of outright job losses. Economists say the downturn reflects both a collapse in hiring momentum and a growing impact from restrictive immigration and trade policies. The revisions to May and June, cutting them to just 19,000 and 14,000 new jobs respectively, are the steepest since the early days of the pandemic. Markets reacted swiftly. The Dow Jones Industrial Average plunged over 600 points Friday morning, while the S&P 500 and Nasdaq fell 1.4% and 1.8%, respectively. Investors now widely expect the Federal Reserve to cut interest rates in September—odd...

Consumer inflation in the U.S. edged higher in June, offering early signs that President Trump’s sweeping tariff agenda may finally be filtering through to household costs.  While the overall rise in prices was modest, several tariff-sensitive categories showed upward momentum, reigniting debate over the path of monetary policy and trade strategy. The Consumer Price Index rose 0.3% in June, pushing the year-over-year inflation rate to 2.7%, according to the Bureau of Labor Statistics. Core CPI, which strips out volatile food and energy prices, climbed 0.2% month-over-month and now stands at 2.9% annually — its highest since early 2024. Economists had widely expected this pickup. But the composition of the price increases is drawing closer scrutiny, as select consumer goods — particularly apparel and home furnishings — recorded notable gains, likely reflecting the onset of import tariffs announced earlier this year. While categories like used vehicles and airline fares saw declines,...

As the political winds swirl, high-profile clashes are spilling into markets. The latest showdown between President Trump and Elon Musk has underscored just how tightly innovation and government have become intertwined. Tesla ( TSLA ) and SpaceX, companies with tens of billions tied to federal contracts and regulation, are at the center of this entanglement. Recent moves—such as Musk’s brief suggestion to decommission a key spacecraft—have drawn scrutiny. Whether misstep or maneuver, the fallout reflects growing unease over government influence, particularly in industries like autonomous vehicles and biotech. Meanwhile, the White House is pushing hard against China, prompting Beijing to reopen rare earth materials trade with Detroit automakers, a geopolitical chess move that doesn’t yet include Tesla. With regulatory uncertainty rising, so too does the risk for companies betting big on innovation. Yet Musk appears undeterred. Confidence in Tesla’s robo-taxi rollout is building, even a...

Markets mixed as tariff threats, tech crackdowns, and geopolitical uncertainty weigh on investor sentiment. Markets Open Lower, Then Rebound Stocks opened the week on shaky ground Monday as renewed U.S.-China trade friction jolted markets early. The Dow Jones Industrial Average slipped by around 150 points, while the broader S&P 500 wobbled near the flatline. But by the final hour of trading, the S&P 500 ETF (SPY) had clawed back losses and was up 0.4%, with the tech-heavy Nasdaq notching a modest 0.3% gain. The tepid start to June followed a blockbuster May, where the S&P 500 climbed more than 6% — its strongest May in 34 years — largely driven by mega-cap tech stocks. But Monday’s gains were more cautious as investors grappled with a renewed trade spat between Washington and Beijing. Trump’s Tariff Threats Reignite Old Tensions At the center of the volatility: a fresh escalation in rhetoric between the world’s two largest economies. President Trump accused China of violat...

U.S. equity markets surged Monday after Washington and Beijing announced a sweeping 90-day pause on their escalating trade war, dramatically reducing tariffs on hundreds of billions in goods. The agreement, unveiled after two days of talks in Geneva, triggered a sharp rally across all three major indexes. The Dow Jones Industrial Average jumped more than 1,000 points, up 2.5%. The S&P 500 soared 2.66%, while the tech-heavy Nasdaq Composite led the charge with a 3.62% gain. The market response reflects broad investor relief at what many feared was becoming a prolonged economic cold war between the world’s two largest economies. The deal, which slashes U.S. tariffs on Chinese imports from 145% to 30%, and lowers China’s retaliatory duties on American goods from 125% to 10%, was described by Treasury Secretary Scott Bessent as “substantial progress.” It marks the first face-to-face meeting since the tariff standoff intensified in early spring.   Tech Stocks Lead the Rally Big Tech...

The U.S. economy shrank at the start of 2025, marking the first contraction in three years and raising new concerns about growth, prices, and policy. According to the Bureau of Economic Analysis, gross domestic product declined at an annualized rate of 0.3% in the first quarter — a sharper drop than the 0.2% slide forecast by economists. That’s a significant reversal from the 2.4% growth logged in the final quarter of 2024. This downturn was largely driven by a surge in imports, which subtracted five full percentage points from the GDP calculation, as businesses rushed to bring in goods ahead of aggressive new tariffs imposed by the Trump administration. The downturn comes just as inflation remains high, complicating the Federal Reserve’s efforts to guide the economy. Inflation Pressure and Policy Crossroads The inflation picture added to the unease. The Fed’s preferred core inflation metric — the Personal Consumption Expenditures (PCE) index, excluding food and energy — rose 3.5% in t...

Financial markets are rattled as the Trump administration intensifies its global trade war, triggering widespread volatility across asset classes. U.S. stocks and bonds fluctuated sharply, while the dollar index tumbled for a fourth straight session, underscoring investor anxiety amid mounting geopolitical and economic uncertainty. After the S&P 500 slumped over 2% on Monday, equity futures rose modestly in overnight trading, but underlying tension remains. The dollar extended its slide to a 15-month low as the Federal Reserve’s independence came under threat, with President Trump escalating criticism of Fed Chair Jerome Powell and pushing for immediate interest rate cuts. Investors fear any move to prematurely remove Powell could erode confidence in U.S. monetary policy and the dollar's position as the global reserve currency. Treasuries, traditionally a haven, showed only modest demand, while gold surged to a record $3,444 an ounce, and the yen outperformed its G-10 peers, si...

Apple Inc. ( AAPL ) and Nvidia Corp. ( NVDA ) led a tech rally Monday following a pivotal policy shift from the Trump administration that exempts a wide swath of consumer electronics from sweeping tariffs on Chinese imports. The move, announced late Friday, grants temporary relief to some of the U.S.'s largest tech companies and staves off what could have been a supply chain crisis reminiscent of the early pandemic era. Key Apple products—iPhones, iPads, Macs, Apple Watches, and AirTags—will no longer face the 125% tariffs imposed on Chinese goods. A separate 10% baseline tariff on electronics from other nations was also scrapped. The exemptions cover more than $390 billion in U.S. imports, including roughly $101 billion from China, according to RAND estimates. Apple surged 4% on Friday, reversing part of an 11% slide seen earlier this month amid tariff fears. Nvidia, which faces export limits on its AI chips to China, gained 3% amid optimism that semiconductor exemptions will prot...

In an unexpected turn of events, President Donald Trump announced on Wednesday that he would temporarily halt his aggressive tariff plans, causing an unprecedented surge in U.S. stock markets. The decision, a 90-day pause on tariffs for countries that had not retaliated, led to one of the biggest rallies in financial history, with the Nasdaq 100 posting its largest single-day gain ever. Trump, taking to Truth Social, explained that the 90-day pause would apply to countries other than China, which would see its tariff rate increased to 125%—up from 104%. The tariff reprieve for other nations would also come with a significant reduction in duties, down to a more manageable 10% from previously proposed higher levels. Tariff Shift and Market Response The stock market reacted almost immediately. The S&P 500 soared over 10%, marking its most significant daily gain since 2008. The Nasdaq Composite, buoyed by tech giants, surged by a record-breaking 12%. Tech stocks led the charge, with co...

The sharp and persistent decline in global equity markets—fueled by President Donald Trump’s aggressive tariff policy—is testing the resolve of investors and the stability of the financial system. Since April 1, the S&P 500 has fallen more than 10%, sending shockwaves across asset classes and raising concerns among economists and strategists who are watching closely for early signs of a financial crisis. Although traditional measures of market stress like high-yield credit spreads and interbank funding rates remain relatively stable, the sustained pressure on equities is rattling confidence. “It’s kind of a slow-moving shift in that direction [of a crisis],” said Jens Nordvig, founder of Exante Data. The longer tariffs remain in place, he warns, the more likely pressure will build on the banking sector—and potentially the broader economy. The fear is less about an immediate crash and more about systemic cracks forming under the surface. Unusual movements in both equities and fixed ...