Middle East, Inflation Updates Send Stocks Mixed

• July inflation reports showed easing price pressures, increasing probability of Federal Reserve holding rates steady in September to 67.4%
• U.S.-Iran tensions over Strait of Hormuz navigation caused fluctuations in West Texas Intermediate crude oil prices
• Upcoming week features key economic data including FOMC meeting minutes, Manufacturing PMI, housing data, and earnings from Walmart and other blue-chip companies

Market Summary: Mixed Session Amid Inflation Data and Geopolitical Tensions

Market Performance:

US equities showed mixed results, with the Nasdaq Composite and S&P 500 Index heading toward their third consecutive weekly gain. The Russell 200 Index also posted Thursday gains, while the Dow Jones Industrial Average struggled with only one winning session for the week.

Inflation and Monetary Policy:

July inflation data dominated headlines, with both the Consumer Price Index (CPI) and Producer Price Index (PPI) reports released. The data fueled optimism for a pause in Federal Reserve tightening, with the CME Fed Watch tool pricing in a 67.4% probability of no rate change at the September FOMC meeting.

Geopolitical Concerns:

Ongoing U.S.-Iran tensions centered on the Strait of Hormuz created investor uncertainty, with West Texas Intermediate (WTI) crude prices experiencing volatility throughout the week.

Corporate Developments:

Boeing (BA) and Archer Aviation (ACHR) announced a significant deal where Archer would acquire three Boeing subsidiaries, giving Boeing a stake in Archer. Kroger (KR) quietly closed 39 stores, while several companies saw earnings-related moves. CoreWeave (CRWV) doubled its guidance, and Hims & Hers Health (HIMS) declined following a Q2 loss. American Airlines (AAL) announced C-suite changes.

Week Ahead:

Investors await critical economic data including July FOMC meeting minutes, U.S. Manufacturing PMI, housing data, and weekly jobless claims. Major earnings reports are scheduled, headlined by Walmart (WMT).

Regulatory Note:

The longstanding Pattern Day Trader (PDT) rule requiring $25,000 minimum account balances has been eliminated, potentially expanding market participation.