US stocks rose today after inflation picked up, but not as much as investors feared when excluding volatile food and energy prices.
The Dow Jones Industrial Average rose nearly 170 points, hitting a new intraday record, the S&P 500 rose 0.1% to its daily high, and the Nasdaq Composite fell. On the other hand, the 10-year bond yield was flat around 1.34%.
CPI for July showed that prices jumped by 5.4% on an annual basis, compared to expectations of 5.3%, and the government said that the consumer price index rose by 0.5% in July on a monthly basis.
Technology stocks are down, and FAANG shares are trading in negative territory, except for Apple. Wendy's stock rose by 2% after reporting better-than-expected earnings before the opening bell, and eBay's results are due today as well. On Friday, 87% of S&P 500 companies that reported quarterly results beat earnings estimates.
The Dow and S&P 500 indices closed at record highs after the Senate passed the trillion dollar infrastructure bill. The legislation allocates $550 billion in new spending to areas including transportation and the electric grid. The Nasdaq Composite Index is down 0.49% on Tuesday, posting its second negative session in the last three.
The streak of record gains for stocks comes despite rising numbers of coronavirus cases in the United States and around the world.
On the other hand, oil prices fell today after the White House called on OPEC and its allies to increase oil production to support the global recovery from the epidemic.