Tame U.S. inflation sparks rally

July’s CPI number came in at 2.7% compared to the expected 2.8%, though core inflation was 3.1% vs. the 3.0% estimate. Nonetheless, these figures sparked a rally on Wall and Bay streets, where investors now expected the U.S. Fed to cut interest rates next month. They also lifted the S&P, Nasdaq and TSX to fresh highs. The S&P rose 1.13% to 6,445, the Nasdaq 1.39% to 21,681 and the Dow 1.1%.

Airlines were among Tuesday’s winners with United soaring 10.23% and Delta 9.23%. Meanwhile, Paramount Skydance leapt 8.4%, Intel 5.62% and Warner Bros. Discovery 4.08%. The 10-year yield inched up to 4.287%. Bitcoin rose 0.9% to US$119,920.

On Bay Street, the TSX rallied 0.53% to a new high of 27,921. All sectors except utilities finished in the green. Healthcare, real estate and materials were the best performers. Cenovus climbed 2.15%, B2Gold 4.64%, Altus Group 9.51%, Iamgold 6.44% and BRP 5.85%. Gold itself increased US$5 to US$3,347 while WTI slid 1.3% to US$63.10.

🛫 United Airlines Holdings (UAL-Q) +10.23%

🛫 Delta Air Lines Inc (DAL-N) +9.23%

🖨 Paramount Skydance Corporation (PSKY-Q) +8.4%

💾 Intel (INTC-Q) +5.62%

📺 Warner Bros. Discovery (WBD-Q) +4.08%

🅱 Bitcoin (BTCUSD) (CRYPTO:BTC) +0.9%

🛢 Cenovus Energy (CVE-T) +2.15%

🥇 B2Gold Corp. (BTO-T) +4.64%

🏛 Altus Group (AIF-T) +9.51%

🥇 Iamgold Corp (IMG-T) +6.44%

⚙ BRP INC. (DOO-T) +5.85%