4:17pm: S&P 500 tops 6,400
Investor enthusiasm that Tuesday’s inflation report will prompt the Fed to cut interest rates at its next meeting saw US stocks move to record highs.
The S&P 500 closed above 6,400 for the first time, up 1.1% at 6,445 points. The Nasdaq added 1.4% at 21,681 points, a record high, while the Dow Jones added 1.1% at 44,458 points.
3:35pm: Proactive news headlines
Blockmate Ventures Inc (TSX-V:MATE, OTCQB:MATEF) said its investee Hivello has added Theta Network as the 11th DePIN integrated into its platform to boost passive income opportunities.
New Era Helium Inc (NASDAQ:NEHC) rebranded as New Era Energy & Digital to reflect its shift toward supplying power and infrastructure for AI data centers.
M2i Global Inc (OTC:MTWO) appointed market analyst and former NFL player Jon Najarian to its advisory board as it advances plans for a US-controlled critical minerals supply chain.
Abacus Global Management Inc (NASDAQ:ABL) acquired a minority stake in Dynasty Financial Partners, expanding their existing collaboration in wealth management technology and services.
Polarean Imaging PLC (AIM:POLX, OTC:PLLWF) submitted a phase III trial protocol to the FDA seeking to expand the use of its XENOVIEW lung imaging agent to quantitative gas-exchange imaging.
Cornish Metals Inc (AIM:CUSN, TSX-V:CUSN, OTC:SBWFF) received an ‘A’ ESG rating from Digbee following an independent review of its corporate and project performance.
IXICO PLC (LSE:IXI, OTC:PHYOF) won two contracts worth £1.3 million to provide neuroimaging services for clinical trials in Alzheimer’s disease and Friedreich’s ataxia.
Thor Explorations Ltd (TSX-V:THX, AIM:THX, OTC:THXPF) reported record second-quarter revenue and profit after selling 25,900 ounces of gold at an average price of US$3,187 per ounce.
3:00pm: PPI Data in Focus
Thursday’s Producer Price Index, forecast at 2.5% year-on-year, will be closely watched as a potential signal of future inflation.
“As an upstream measure of goods and services prices at the producer level, it acts as a warning for potential consumer price pressures, should producers pass costs through,” Ahmad Assiri, Research Strategist at Pepperstone said, noting that trade frictions could be contributing to latent inflation risks.
2:10pm: Stocks on the move
- BigBear.ai (NYSE:BBAI) shares fell after second-quarter revenue of $32.47 million missed estimates and dropped 18% year-over-year, prompting the company to lower its full-year outlook.
- Kodak (NYSE:KODK) issued a “going concern” warning after reporting a $26 million net loss and a 1% revenue decline to $263 million in Q2.
- New Era Helium Inc (NASDAQ:NEHC) rebranded to New Era Energy & Digital to focus on supplying power and infrastructure for next-generation AI data centers.
- Spirit Aviation Holdings Inc (NYSEAMERICAN:FLYY) warned of “substantial doubt” over its ability to continue operating due to weak demand and liquidity needs, considering selling aircraft and gate rights for collateral.
- Hanesbrands (NYSE:HBI) surged nearly 37% premarket on reports that Canada’s Gildan Activewear may acquire the company for $5 billion including debt.
- Circle Internet Group (NYSE:CRCL) rose after Q1 revenue grew 53% year-over-year to $658 million, beating estimates of about $646 million.
- Polarean Imaging PLC (AIM:POLX, OTC:PLLWF) jumped 15% after submitting a phase III trial protocol to the FDA to expand the use of its lung imaging agent XENOVIEW.
- Atalaya Mining (AIM:ATYM, TSX:AYM) climbed 7% on record Q2 and H1 earnings, higher copper output, and an upgraded full-year outlook.
1:20pm: Kodak sees going concern
Kodak (NYSE:KODK) has issued a “going concern’ warning alongside its second quarter results, signalling doubt about the film and commercial printing company’s ability to continue operations.
Kodak posted a $26 million net loss and a 1% year-over-year decline in revenue to $263 million for the second quarter.
Meanwhile, short-term debt and obligations, including the upcoming maturity of Series B preferred stock and term loans, present high liquidity risk.
Kodak plans to generate liquidity by terminating its US Kodak Retirement Income Plan, aiming to reclaim $500 million by December 2025 to pay down debt and refinance obligations.
Shares of Kodak plunged 26% to about $5 following the update.
12:45pm: Small biz optimism improves
The NFIB Small Business Optimism Index improved in July, driven by more positive economic expectations.
However, Wells Fargo analysts noted that uncertainty spiked sharply ahead of the August 1 tariff deadline, suggesting that the unstable tariff environment is complicating decision-making for small businesses.
Despite this, inflationary pressures have yet to show up in small business pricing. The firm highlights that "capital expenditures remain suppressed alongside elevated uncertainty," while the labor market is gradually loosening.
The data indicates weak labor supply continues to challenge businesses, especially those affected by immigration changes.
12:20pm: Perplexity bids for Chrome: report
Perplexity AI has submitted an unsolicited $34.5 billion offer to acquire Google’s Chrome browser, nearly double its own $18 billion valuation, according to a Wall Street Journal report.
The bold move comes as a federal judge weighs an antitrust ruling that could force Alphabet Inc (NASDAQ:GOOG) to divest Chrome after finding the company illegally monopolized the search market.
Chrome dominates the global browser market with roughly 60% share and 3.5 billion users worldwide. Despite this, experts say the chances of a sale remain low given the browser’s commoditized nature and the open-source foundation of its core technology.
Google is expected to vigorously contest any forced breakup, making a voluntary sale unlikely.
11:25am: Trump mocks Goldman CEO
President Trump praised tariffs as “incredible” for the US economy in a new post on Truth Social, claiming they have boosted the stock market and national wealth without causing inflation.
He argued that most tariffs are paid by companies and foreign governments, not consumers.
Trump also criticized Goldman Sachs CEO David Solomon for inaccurate predictions on tariffs and market impacts.
"I think that David should go out and get himself a new Economist or, maybe, he ought to just focus on being a DJ, and not bother running a major Financial Institution," he wrote.
10:40am: How will the Fed react?
The latest inflation data highlight ongoing debate on how the Fed will manage inflation risks against labor market conditions ahead of its September meeting.
Analysts note the difficulty for the Federal Reserve in balancing inflation control with supporting the labor market. Wells Fargo analysts emphasize tariff impacts fueling inflation and express caution about aggressive rate cuts unless the labor market weakens significantly. Jeffrey Roach from LPL Financial warns of a "stagflation-lite" scenario due to rising core inflation but expects a Fed rate cut next month given labor market weakening.
Comerica’s Eric Teal points to yield curve movements suggesting rate cuts may be needed if the economy slows but inflation remains contained. Chris Zaccarelli of Northlight Asset Management doubts tariffs will sustain inflation and expects the Fed to cut rates next month, with upcoming jobs and CPI data to be decisive.
Conversely, Larry Tentarelli from Blue Chip Daily Trend Report doubts a September rate cut is likely due to consecutive months of higher inflation, although he remains bullish on stocks unless there's a severe labor market downturn.
9:50am: Fed rate cut expectations grow
Wall Street got a boost Tuesday morning after softer-than-expected inflation data fueled hopes the Federal Reserve could cut interest rates as soon as next month.
The Dow Jones climbed 212 points, or 0.5%, to 44,187, while the S&P 500 and Nasdaq each gained 0.5% at 6,402 and 21,496 respectively. The Russell 2000 was also up 0.5% at 2,230.
July’s Consumer Price Index rose 2.7% from a year earlier, just shy of estimates, with the monthly reading up 0.2%. Core CPI, which strips out food and energy, came in at 3.1% year-over-year and 0.3% on the month, in line with forecasts. Energy prices fell, including a 2.2% drop in gasoline, while shelter costs edged up 0.2%.
The cooler data sent rate-cut odds for September to 78% on Polymarket, with some economists noting it could put the Fed’s preferred PCE measure near its 2% target.
Donald Trump, in his latest remarks, urged Fed Chair Jerome Powell to “NOW lower the rate,” while criticizing spending on Fed building renovations and hinting at a possible lawsuit. Separately, CNBC reported that Trump signed an executive order extending the deadline for new China tariffs by 90 days.
9:10am: Inflation eases
US consumer prices rose 2.7% in July from a year earlier, slightly below expectations for a 2.8% gain, Labor Department data showed on Tuesday.
On a monthly basis, the Consumer Price Index (CPI) increased 0.2%, in line with forecasts.
Core CPI, which excludes food and energy, climbed 3.1% annually, just above the 3% estimate, and 0.3% from June, matching projections.
8:11am: Futures little changed
US stock index futures were little changed on Tuesday as investors awaited the release of July consumer price index data.
Dow futures fell 25 points to 44,059, S&P 500 futures rose 5.5 points to 6,405.25, and Nasdaq futures dropped 13.87 points.
Global market sentiment was subdued. Optimism over Washington and Beijing extending their tariff truce to November was offset by caution ahead of the inflation data. In Asia, Japan’s Nikkei and Australia’s ASX hit record highs.
The US dollar traded flat in early dealings, while European and Asian markets showed mixed performance ahead of the New York open.
The media-rights merry-go-around continues to drive summer headlines today, with Paramount signing a seven-year $7.70 billion deal to become the exclusive US broadcaster of UFC events.
The agreement with the TKO-owned mixed martial arts promoter covers 13 marquee ‘numbered’ events and 30 Fight Night events annually on Paramount+, with some simulcast on CBS. The shift from pay-per-view is aimed at growing UFC’s audience.
It follows hot on the heels of Paramount’s merger with Skydance, and replaces UFC’s prior $550.00 million-per-year arrangement with Disney’s ESPN.
Only a week a go, ESPN was making headlines with its deal with UFC’s fellow TKO brand WWE.
Elsewhere, Circle, the stablecoin specialist and Wall Street favourite IPO of 2025, saw its shares gain more than 6% in premarket trade after posting second-quarter revenue of $658 million, beating forecasts of $647 million.
The company reported a net loss of $482 million due to IPO-related charges. Reserve income rose 50% year-on-year to $634 million on an 86% increase in USDC circulation.
The stock is up more than 400% from its $31.00 IPO price as stablecoin-friendly legislation boosts sentiment.
Stock and crypto trading app, and another from the Wall Street’s IPO class of 2025, eToro reported second-quarter adjusted earnings of 56 cents per share, exceeding analyst expectations of 50 cents, driven by higher customer trading activity.
The app’s funded accounts tally increased 14% to 3.63 million, while assets under administration grew 54% to $17.5 billion.
eToro shares rose nearly 1% in premarket trade after the update.