U.S. inflation data matched forecasts, but the Dow Jones failed to sustain early gains, closing near unchanged at 53,800.
The July Consumer Price Index rose 0.1% month-over-month, aligning with consensus estimates and reversing a 0.4% decline in June. The annual rate eased to 3.4% from 3.5%, while core CPI increased 0.2%, matching forecasts at 2.5% year-over-year.
The Dow Jones Industrial Average briefly touched a session high near 54,000 following the release but reversed course, trading slightly below yesterday’s close. Rate futures adjusted, pricing a 58% chance of a Fed hold in September, up from an even split earlier in the week.
While the S&P 500 and Nasdaq gained 0.2% and 0.5%, respectively, driven by AI-related stocks, the Dow remained stagnant, failing to capitalize on the inflation data.