Inflation Shock Jumbles New York Stocks

New York stocks opened mixed after U.S. annual inflation came in below spring expectations, weakening bets on near‑term Federal Reserve rate hikes.

Inflation Shock: Below Expectations

■U.S. headline inflation printed at %2,6 year‑on‑year, under the %3,0 forecast.

■Core inflation (excluding food and energy) held steady at %2,1.

■The data reinforced the view that price pressures are easing.

Rate‑Cut Bets: A Turning Point

■According to the CME FedWatch tool, the odds of a %5,25 Fed funds rate hike in March fell to just %15.

■Markets now price in roughly a %5 chance of a hike by June.

■Traders assign an %80 probability that rates will stay unchanged in the short term.

Index Mosaic: Mixed Moves

■The S&P 500 rose %0,12 at the open, while the Dow Jones slipped %0,08 and the Nasdaq Composite gained %0,20.

■Technology shares led the advance, buoyed by lower rate expectations; Apple and Microsoft each added about %0,35.

■Energy and financial sectors lagged, pressured by softer yield outlook.

The softer inflation print has sparked hopes that monetary policy may turn more flexible, lifting buying interest especially in growth‑oriented names; however, if long‑term rate expectations remain hazy, volatility could creep back in.