Nasdaq rebounds as cooling US inflation weighs on dollar

US stock markets experienced a rebound, with the tech-heavy Nasdaq leading the gains, buoyed by robust earnings reports from major American banks and a more favorable inflation report.

JPMorgan Chase was among the leading US lenders that announced increased profits, attributing the success to strong performance in financial markets and investment banking. CEO Jamie Dimon commented on the US economy's notable resilience in 2026, stating that higher oil prices resulting from the US-Iran conflict had not significantly hampered economic activity.

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demonstrated notable resiliency

Other major banks, including Citigroup, Bank of America, Goldman Sachs, and Wells Fargo, also reported higher profits for the second quarter. While their stock performance varied, the Dow Jones Industrial Average saw a modest increase, and other major indices advanced. The Nasdaq, which had previously fallen due to rising oil prices, recovered as oil price increases moderated following President Trump's decision to back down from threats of taxing ships in the Strait of Hormuz.

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There might be some that look at this morning's data and say, 'Oh, mission accomplished! Everything is swell.' That is not my view.

Market participants welcomed the US consumer price index data, which indicated a sharper-than-expected decrease in price pressures. The CPI rose 3.5% year-on-year in June, down from 4.2% in May. This marked a significant slowdown from a three-year high, with falling energy costs offsetting increases in housing and food prices. Analysts had predicted a higher 3.8% CPI increase.

Kathleen Brooks, research director at XTB trading platform, noted this as the largest moderation in US price growth in six years, significantly reducing the likelihood of an interest rate cut by the Federal Reserve this month. However, Fed Chair Kevin Warsh cautioned against premature celebration, emphasizing that officials have "no tolerance" for persistently high prices and are committed to curbing the ongoing "inflation surge."

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no tolerance