Inflation Eases, Big Tech Earnings Boost Stocks

Stocks on Wall Street opened higher on July 28 after two encouraging pieces of news: solid Big Tech earnings and inflation numbers that showed a welcome decline. The S&P 500 rose by 0.21% as investors digested the positive developments ahead of what could be the most consequential earnings week of the quarter.

The June Consumer Price Index, released on July 14, revealed headline inflation dropping to 3.5% year-over-year, a significant decline from May's 4.2%. Core inflation also eased to 2.6%, getting close to the Federal Reserve's 2% target.

The reaction in risk assets was swift, with Bitcoin jumping by 4.4% on July 15 and Ethereum posting similar gains. The week of July 28-30 is packed with Magnificent 7 earnings, including reports from Microsoft, Apple, and Amazon. Apple briefly touched a $5 trillion market cap during this period.

The inflation decline has traders thinking about rate cuts, which could lead to cheaper money. This would benefit assets like Bitcoin, making it an attractive investment option.