CPI Report May Spark Rally in Mega-Cap Stocks

The US stock markets are at an inflection point ahead of the July Consumer Price Index (CPI) report, which is expected to show a slight cooling in headline inflation to 3.4% year-over-year.

The Federal Reserve's decision on interest rate hikes after its July meeting pause at 3.50%-3.75% will be heavily influenced by the inflation data.

A softer-than-expected CPI print would reduce rate-hike fears and lower bond yields, benefiting stocks like Tesla (TSLA), D.R. Horton (DHI), and Apple (AAPL).