U.S. markets turned mixed on Tuesday after new inflation data surprised to the upside, fueling concerns that the Federal Reserve may hold off on cutting interest rates. The S&P 500 dropped around 0.4%, while the Dow Jones Industrial Average fell by more than 430 points, or roughly 1%. The Nasdaq Composite, however, edged up about 0.2%, notching a fresh all-time high, powered by a nearly 4% rally in Nvidia shares.
The rally in tech stood in stark contrast to broader market weakness after the Consumer Price Index (CPI) for June showed a 2.7% year-over-year increase, up from 2.4% in May, as reported by Reuters. The hotter-than-expected reading sent Treasury yields sharply higher, with the 10-year yield climbing to around 4.48%, reflecting investor concerns that the Fed may keep interest rates elevated longer than anticipated.
