Key Takeaways
- The June CPI rose 2.7% year-over-year, the fastest increase since January, slightly above expectations, with core inflation up 2.9%, reflecting growing price pressures linked partly to tariffs.
- The inflation data influenced the U.S. Dollar Index, which weakened briefly but remained relatively stable overall as traders weighed implications for the Federal Reserve rate decisions.
- Bitcoin and the broader cryptocurrency market dropped following the report, as higher inflation historically dampens demand for speculative assets.
- Stock markets reacted with mixed results amid uncertainty over Fed policy, and investors remain cautious, awaiting further data and guidance.
Markets responded cautiously on Tuesday to the June Consumer Price Index (CPI) report of the U.S. The Bureau of Labor Statistics released data on Tuesday showing that the CPI rose 2.7% year-over-year in June, marking the fastest pace since January and slightly surpassing expectations.
The acceleration in inflation is being linked to President Trump’s tariffs, which are increasingly affecting the economy and supporting the Federal Reserve’s decision to keep interest rates steady at its upcoming meeting this month.
Additionally, “core” inflation, which excludes volatile food and energy prices and serves as a dependable indicator of underlying price pressures, also climbed, increasing 2.9% from the same period last year.
This mixed news caused the U.S. Dollar Index (DXY) to weaken initially, dropping below 98 right after the report. Overall, the dollar’s movement remained small and was tied directly to how traders reacted to the inflation data and its implications for future rate decisions.
Bitcoin suffered a significant 3.45% decline yesterday, tumbling from approximately $123,000 to $115,600 within hours of the release. The worldwide cryptocurrency market cap followed suit, dropping roughly 3.23% from the open position as traders reassessed Federal Reserve monetary policy expectations.
Crypto analysts note that elevated CPI readings historically create volatility in digital assets, as higher inflation reduces appetite for speculative investments.
Stock markets showed mixed responses, with some sectors gaining while others pulled back amid uncertainty over Federal Reserve rate decisions. Overall, market movements remained moderate, reflecting cautious sentiment toward upcoming economic data.
Global Indices
- S&P 500 (SPX): 6,243.76 (-0.40%)
- Dow Jones Industrial Average (DJI): 44,023.29 (-0.98%)
- Nasdaq Composite (IXIC): 20,677.80 (+0.18%)
- Nikkei 225: 39,649.50 (-0.07%)
- Euronext 100 (N100): 1,576.45 (–0.59%)
- FTSE 100 (FTSE): 8,940.59 (+0.03%)
Individual Stocks
- NVIDIA Corp. (NVDA): 170.70 (+4.04%)
- Tesla Inc. (TSLA): 310.78 (-1.93%)
- Microsoft Corp. (MSFT): 505.82 (+0.56%)
- Meta Platforms (META): 710.39 (-1.46%)
- Apple Inc. (AAPL): 209.11(+0.23%)
- Amazon.com Inc. (AMZN): 226.35 (+0.29%)
Commodities
- Gold (GCQ5): $3,344.40 (+0.23%)
- Silver (SIU5): $38.210 (+0.26%)
- WTI Crude Oil (USOIL): $66.74 (+0.33%)
- Brent Crude (BRENT3!): $68.75 (+0.06%)
Cryptocurrencies
- Bitcoin (BTCUSD): $119,320.0 (+1.76%)
- Ethereum (ETHUSDT): $3,166.45(+6.31%)
- Solana (SOL): $167.285 (+2.95%)
- BNB (BNBUSDT): $695.85 (+1.86%)
Forex
- U.S. Dollar Index (DXY): 98.232 (–0.08%)
- EUR/USD: 1.1620 (+0.16%)
- GBP/USD: 1.3399 (+0.10%)
- USD/JPY: 148.83 (-0.05%)
Market Wrap-up:
Looking ahead, investors will continue to monitor incoming economic data for further clues on inflation trends and direction on the Fed policy. With rate cut expectations now more finely balanced, markets may remain range-bound until there’s clearer guidance from central bank officials or key indicators in the weeks ahead.
Read More: Bitcoin Remains Steady Around $104k as CPI Cools Down in April to 0.2%
