Welcome to Markets Desk, here's what's moving right now.
A softer than expected June CPI report is rippling across asset classes this afternoon. The dollar index is down more than half a percent, gold is rallying, and Treasury yields are sliding as traders dial back the odds of any near term Fed rate hike. The inflation print came in below consensus, giving the bond market room to breathe and pulling rate sensitive equities higher along with it.
That bond rally is doing real work for stocks. The S and P five hundred is up nearly four tenths of a percent, with the Nasdaq one hundred outperforming, up close to one percent. Lower yields are compressing discount rates on growth names, which explains why tech is leading the session. Futures markets had already been leaning cautiously, so this CPI surprise gave bulls a clear entry point.
Shifting to soft commodities, coffee is the standout mover today, with September arabica surging more than three percent on strength in the Brazilian real. A stronger real reduces the incentive for Brazilian growers to sell dollar denominated exports, which tightens perceived supply and sends futures sharply higher. Cocoa, meanwhile, is drifting lower for a third straight session after Ivory Coast delivery news relieved earlier supply anxieties.
That's the tape. Markets Desk, signing off the floor.
