How did inflation data affect the markets?

The lower-than-expected inflation data boosted major indexes by fueling expectations of interest rate cuts.

Why did IBM stock drop?

IBM shares fell after the company flagged a Q2 earnings shortfall relative to expectations, without providing specific details.

Which sectors led the gains?

Technology and major bank stocks led the gains, with NVIDIA, AMD, Uber, and JPMorgan all rising.

US Stocks Rise as CPI Falls More Than Expected; IBM Drops on Q2 Update

US stock indexes rose in midday trading Thursday after June CPI data showed a larger-than-expected decline, fueling optimism about the Fed's rate path. In contrast, IBM shares dropped after the company issued an update indicating a Q2 earnings shortfall.

July 14, 2026

2 min read

Source: MT Newswires

Key Numbers

cpi change

-0.1%

cpi yoy

3.0%

ibm drop

-2.5%

All three major US stock indexes were up in late-morning trading Thursday, supported by inflation data that came in below expectations, as big banks kicked off earnings season.

Economic Data Details

Labor Department data showed the Consumer Price Index (CPI) for June fell 0.1% month-over-month, beating analyst expectations for flat reading. On an annual basis, CPI rose 3.0%, down from 3.3% in May, marking the lowest level in over a year.

Sector Performance

Technology stocks led the gains, with NVIDIA (NVDA), Advanced Micro Devices (AMD), and Uber (UBER) rising between 1% and 3%. Major bank stocks including JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC) also posted modest gains as Q2 earnings season began.

IBM Declines

In contrast, IBM (IBM) shares fell 2.5% after the company issued a Q2 earnings update indicating a "shortfall" relative to expectations, without providing specific figures. The announcement comes two weeks ahead of the scheduled full earnings release.

What This Means for Investors

The weaker inflation data supports expectations that the Federal Reserve may begin cutting interest rates sooner than previously anticipated, boosting risk appetite. However, IBM's warning reminds investors that corporate earnings may not be immune to economic slowdown.

Frequently Asked Questions

The CPI measures the average change in prices paid by consumers for goods and services, used as a key inflation gauge.

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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.