CNBC Daily Open: Inflation in the U.S. hit a four-month high in June — as expected
But what happens when we expect something bad, and the outcome meets expectations?
The U.S. consumer price index in June, as reported by the Bureau of Labor Statistics on Tuesday, matched the Dow Jones consensus estimate. And there was even a pleasant surprise: Core inflation, which excludes volatile food and energy prices, rose 0.2% on the month, which was 0.1 percentage points below expectations.
That said, both the headline and core inflation numbers, on an annual basis, hit their highest since February.
"The latest U.S. inflation report practically confirmed that President Trump's tariffs acted to push up consumer prices in June," said Matthew Ryan, head of market strategy at global financial services firm Ebury.
Hence, while the inflation figures didn't surprise market watchers and investors — markets really dislike unpredictability — the fact that the downbeat expectations were realized still weighed on stocks, which mostly fell on the news.
As yesterday's market movements illustrate — and as many of us, after going through performance reviews with our supervisors, know — sometimes, meeting expectations isn't good enough.
A preliminary U.S.-Indonesia deal. U.S. President Donald Trump said Tuesday that under the trade agreement, U.S. exports from Indonesia will face a 19% tariff, while American goods will enter the Southeast Asian country tariff-free. Jakarta has yet to confirm the deal.
Nvidia CEO praises China's AI sector. Speaking at a supply chain expo in Beijing on Wednesday, Jensen Huang named DeepSeek and Ernie bot as "world class" models. He also lauded Chinese companies' open-source approach to AI, saying it is a "catalyst for global progress."
The Nasdaq Composite hits a record. A 4% jump in Nvidia boosted the tech-heavy index, even as the S&P 500 and Dow retreated Tuesday. Asia-Pacific markets mostly fell Wednesday. Shares of Chinese toymaker Pop Mart slumped over 6% despite issuing a bullish outlook.
ASML's second-quarter earnings smash expectations. The Dutch chip equipment maker beat estimates on net sales and net profits by around $200 million euros. However, ASML forecast its revenue for the current quarter will come in below market expectations.
[PRO] Fund managers are bullish on European stocks. A Bank of America survey of European fund managers found that 81% of respondents saw upside for the region's equities in the coming 12 months.
Central banks are increasingly buying gold from local mines as prices surge
Traditionally, central banks acquire gold through the global over-the-counter market — typically centered in London — where gold is transacted via major bullion banks, priced in U.S. dollars, euros, or sterling.
However, 19 out of 36 respondents in the World Gold Council's latest central bank survey said they are buying gold directly from domestic artisanal and small-scale gold miners in local currency. Four are thinking of following suit.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
25 minutes ago
- Bloomberg
Dollar Rebounds After Trump-Powell Drama; Trump Eyes 10-15% Tariffs
Stocks edge higher and the dollar bounces following a jolt of nervousness over the future of Fed Chair Jerome Powell. President Trump says he would send letters to more than 150 countries about a potential 10-15% tariff rate. TSMC hikes its 2025 sales growth forecast to around 30% in US dollar in a boost for AI demand hopes. Deutsche Bank's George Saravelos and Sitara Sundar of JPMorgan Private Bank discuss the potential market impact of a Powell removal and what to expect from this earnings season. 'Bloomberg Brief' delivers the market news, data and analysis you need to set your agenda. (Source: Bloomberg)
Bloomberg
25 minutes ago
- Bloomberg
Trump Targets Brazil Ethanol Market That American Firms Helped Fuel
The Trump administration has blamed tariffs for a slump in ethanol shipments to Brazil. But the loss of what was once the biggest export market for US biofuel is, in part, a problem of America's own making. Brazil has drastically reduced its dependence on US biofuel imports by investing billions of dollars in corn-based ethanol, creating a domestic industry that it later moved to protect through tariffs. The push began in 2017, led by Iowa-based Summit Agricultural Group, whose FS unit installed Brazil's first corn ethanol plant.
Hamilton Spectator
27 minutes ago
- Hamilton Spectator
Just 1 in 4 US adults say Trump's policies have helped them, a new AP-NORC poll finds
WASHINGTON (AP) — Only about one-quarter of U.S. adults say that President Donald Trump's policies have helped them since he took office, according to a new poll that finds underwhelming marks for him on key issues, including the economy, immigration, government spending and health care. In fact, the Republican president fails to earn majority approval on any of the issues included in the poll from The Associated Press-NORC Center for Public Affairs Research . He's even slipped slightly since earlier this year on immigration, which has consistently been a strength for him in his second term. And while a majority of Americans do see Trump as at least 'somewhat' capable of getting things done following the passage of his sprawling budget bill , fewer believe he understands the problems facing people like them. Most don't see positive impact from Trump's policies Roughly half of U.S. adults report that Trump's policies have 'done more to hurt' them since his second term began six months ago, the survey found. About 2 in 10 say his policies have 'not made a difference' in their lives, with about one-quarter saying his policies have 'done more to help' them. The vast majority of Democrats and about half of independents say Trump's policies have had a negative impact, while even many Republicans say they haven't seen positive effects. 'As it sits today, I don't know his policies have made much of a difference in my day-to-day life,' said Landon Lindemer, a 29-year-old logistics manager from suburban Atlanta who voted for Trump three times. Lindemer said he generally approves of Trump's job performance, even if he has concerns about the massive spending in the big bill the president signed into law on July 4 . 'I'm not sold it's really going to help,' he said. Low but steady presidential approval ratings The mixed reviews on Trump's policies come as he struggles to follow through on key campaign promises, including lowering costs for working-class Americans, preserving popular social welfare programs like Medicaid, ending foreign wars and lowering government spending. Inflation rose last month to its highest level since February as Trump's sweeping tariffs push up the cost of everything from groceries and clothes to furniture and appliances. Separately, Trump's budget bill included Medicaid cuts that will lead to 11.8 million more Americans becoming uninsured and add $3.3 trillion to the national debt , the Congressional Budget Office estimated. At the same time, violent conflicts still rage in Israel and Ukraine. Overall, the new poll finds that about 4 in 10 U.S. adults approve of Trump's job performance, a figure that's in line with his June approval but historically weak compared with recent presidents. Closer to half of U.S. adults approved of President Joe Biden and President Barack Obama at roughly the same point in their Democratic presidencies, according to polls from AP-NORC and Gallup , although Biden's approval rating declined in the second half of his first year and remained low for the rest of his time in office. Poll respondent Bailey Neill, a 42-year-old attorney from San Antonio, said he was 'terrified' of Trump. Neill, a Democrat who describes himself as a 'student of history,' cast Trump as an authoritarian who has followed the controversial playbook outlined in Project 2025 , a conservative blueprint for transformative changes across the federal government that Trump tried to distance himself from before the November election. 'In terms of my day-to-day life, I really haven't seen a change, except for the general fear and anxiety I feel at a core level,' Neill said. Most disapprove of Trump's handling of immigration, economy and more Trump earned less than 50% approval on every issue included in the new AP-NORC poll, including the economy, government spending, trade, taxes, immigration, health care and his handling of the conflict in the Middle East. Only 43% of U.S. adults said they approved of his handling of immigration, down slightly from the 49% who supported his work on the issue back in March. Trump also appears to have lost some support for his spending decisions. About 4 in 10 Americans approve of Trump's handling of government spending, down from 46% in March. On the economy overall, roughly 4 in 10 adults approve of Trump's performance, which hasn't changed measurably in the last few months. Timothy Dwyer, of Dyersburg, Tennessee, a 26-year-old self-described independent who works in retail sales and leans Republican, said Trump's work on the economy, especially his tariffs , has 'really sucked.' 'He's turned us into a toilet and has absolutely made us the laughing stock of the world,' Dwyer said of Trump's trade policies, while also lamenting the president's work on reducing grocery prices and health care. Most view Trump as effective, but fewer think he understands their needs Despite such criticism, most U.S. adults think Trump is at least somewhat effective. About 6 in 10 say 'capable of getting things done' describes Trump at least 'somewhat' well. And about half of U.S. adults say the same about the phrases 'good negotiator' or 'capable of handling a crisis.' That doesn't mean they believe Trump can see things from their perspective. Most Americans, 56%, say 'understands the problems facing people like you' is a phrase that describes Trump 'not very well' or 'not well at all.' His numbers on the question are relatively weak even among those in his party: Just about half of Republicans say he understands the problems facing people like them 'extremely' or 'very' well. 'I think he's doing quite well. He could be doing a hell of a lot worse,' said poll respondent Levi Fischer, of Marshalltown, Iowa, who voted for Trump three times. Still, Fischer acknowledged that he hasn't seen the economy improve as quickly as he hoped. Trump's policies, he said, 'don't make much difference in my life.' ___ Peoples reported from New York. ___ The AP-NORC poll of 1,437 adults was conducted July 10-14, using a sample drawn from NORC's probability-based AmeriSpeak Panel, which is designed to be representative of the U.S. population. The margin of sampling error for adults overall is plus or minus 3.6 percentage points. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
