Little movements were seen in the dollar, Treasuries, and stocks as mixed inflation data supported speculation that the Federal Reserve would pause rate hikes but hold off on declaring the tightening cycle to be complete.
The S&P 500 didn't alter much. Dow Jones Industrial Average performance was below average. By lowering its profitability projection in the face of an increase in jet fuel prices, American Airlines Group led industry losses. The majority of megacaps increased after five of the ten largest US company executives attended a closed-door Senate conference to discuss how artificial intelligence will be controlled. As China raised concerns about iPhone security, Apple's stock price plummeted.
Swaps linked to the upcoming FOMC meetings continue to reflect low odds of a raise next week and roughly 50% odds of one in November. Measures of credit-default swaps for both investment-grade and speculative-grade corporations fell, indicating that betting on a Fed pause in September currently outweigh concerns about the state of the economy.
The consumer price index's core measure, which excludes the costs of food and energy, up 0.3% from July, the first increase in six months. It grew 4.3% from a year ago, which was in line with expectations and represented the smallest growth in almost two years. That still exceeds the Fed's 2% target.
