[New York Stock Market] Mixed Close Ahead of CPI Announcement... Nasdaq Up 0.2%

The three major indices of the U.S. New York stock market closed mixed on the 12th (local time) ahead of the July Consumer Price Index (CPI) announcement.

On that day in the New York stock market, the blue-chip-focused Dow Jones Industrial Average fell 140.53 points (0.36%) from the previous trading day to close at 39,357.01. The large-cap-focused S&P 500 index ended trading up 0.23 points (0%) at 5,344.39. The tech-heavy Nasdaq index rose 35.31 points (0.21%) to close at 16,780.61.

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Investors took a wait-and-see stance ahead of the July Producer Price Index (PPI) on the 13th, the CPI on the 14th, and retail sales data on the 15th. These are indicators to gauge the U.S. economic situation in the second half amid concerns about a recession. The market expects the July CPI to rise 0.2% month-over-month and 3% year-over-year, indicating a moderation in inflation. Additionally, major retailers such as Home Depot and Walmart are scheduled to release earnings this week.

The Wall Street Journal (WSJ) stated that following last week's recession fears that shook the market, upcoming data releases will provide new clues about the U.S. economy.

James Abate, Chief Investment Officer at Center Asset Management, said, "With the recent rise in unemployment, retail earnings are another indicator of consumer health," adding, "If the CPI figures come out higher than expected, it could cause significant disappointment in the market."

If the inflation indicators released this week do not deviate significantly from market expectations, the Federal Reserve (Fed) is expected to cut interest rates in September. According to the Chicago Mercantile Exchange (CME) FedWatch, the federal funds futures market fully prices in a rate cut of at least 0.25 percentage points at the September FOMC meeting.

According to the July Consumer Expectations Survey (SCE) released by the New York Federal Reserve Bank on the same day, the median expected inflation over three years was 2.3%, the lowest level since the survey began in June 2013. The one-year expected inflation rate remained at 3.0%, and the five-year expected inflation rate stayed at 2.8%.

By individual stocks, Nvidia surged 4.08%. In addition, Super Micro Computer jumped 6.33%, and AI-related stocks that had been declining, such as Apple (0.71%) and Microsoft (0.19%), showed gains.

Starbucks rose 2.58% following news that activist hedge fund Starboard Value wants measures to boost the stock price.

Bond yields fell. The 10-year U.S. Treasury yield, a global benchmark for bond yields, traded down 3.5 basis points (1bp = 0.01 percentage points) from the previous day at 3.907%. The 2-year U.S. Treasury yield, sensitive to monetary policy, dropped 3.2 basis points to 4.021%.

Amid rising tensions between Israel and Iran, the U.S. government decided to deploy additional troops, pushing international oil prices higher. West Texas Intermediate (WTI) crude oil surged $3.22 (4.19%) from the previous day to close at $80.06 per barrel. Brent crude, the global oil price benchmark, jumped $2.64 (3.31%) to close at $82.30 per barrel.