How did inflation data impact the market?

The 0.4% monthly CPI decline eased rate hike fears, prompting investors to buy interest-rate-sensitive stocks like tech.

Which stocks led the rally?

NVIDIA (NVDA) rose 3.2%, Skyworks Solutions (SKHY) gained 4.5%, and Goldman Sachs (GS) added 1.8%.

Does the inflation drop mean the Fed will stop raising rates?

Not necessarily; although monthly inflation fell, the annual rate of 3.5% remains above the Fed's 2% target.

S&P 500, Nasdaq End Higher on Chip, Cybersecurity Gains

The S&P 500 and Nasdaq closed higher, supported by gains in chipmakers and cybersecurity stocks, after the June CPI fell 0.4% month-over-month, bringing annual inflation to 3.5% and easing rate hike concerns.

July 14, 2026

2 min read

Source: Stocktwits

Key Numbers

cpi monthly change

-0.4%

annual inflation rate

3.5%

The S&P 500 and Nasdaq ended Tuesday's session in positive territory, driven by strong performances in semiconductor and cybersecurity stocks, following weaker-than-expected inflation data.

Reasons for the Move

The Consumer Price Index (CPI) for June fell 0.4% month-over-month, slowing the annual inflation rate to 3.5%, below forecasts. This decline boosted hopes that the Federal Reserve may slow its pace of interest rate hikes.

Leading Stocks

NVIDIA (NVDA): Rose 3.2%, leading the semiconductor sector.
Goldman Sachs (GS): Gained 1.8%, supported by financials.
Skyworks Solutions (SKHY): Surged 4.5% on positive demand reports.
Verizon (VZ): Up 0.9%.
Lucid Motors (LCID): Rose 2.1%.

Context

The move comes after weeks of volatility due to inflation and rate hike concerns. The latest CPI data may signal that price pressures are peaking, offering some relief to investors.

What This Means for Investors

Despite the optimism, inflation remains above the Fed's 2% target. Investors should watch upcoming jobs and earnings data to confirm the trend.

Frequently Asked Questions

The indices rose, supported by semiconductor and cybersecurity stocks, after the June CPI showed a 0.4% monthly decline, easing inflation fears.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.