US Inflation Data Fails to Move Markets Amid Corporate Profit Surge

The recent release of US inflation data was met with a collective shrug from investors. Despite its significance in shaping future interest rates, the market remained largely unmoved.

Federal Reserve Chairman Kevin Warsh noted that headline inflation eased modestly from 3.5% to 3.4%, in line with expectations. Core inflation registered 2.5%.

This slight relief may have eased pressure on the Fed for a September rate hike, but the S&P 500 remained flat, and the 10-year US Treasury yield actually increased.

Investors seem less focused on backward-looking data, with renewed geopolitical tensions pushing oil prices toward $90 a barrel. This suggests future inflation could rebound, weighing on sentiment.