US Stocks Rally on Softer Inflation Data, IBM Crashes Amid Earnings Disappointment

The US stock market reacted positively to the softer-than-expected June CPI inflation data. The Dow Jones, Nasdaq Composite, and S&P 500 indices all rose, with big banks such as JP Morgan, Bank of America, and Citi leading the gains. However, IBM's shares plummeted by over 25% due to weaker quarterly earnings.

The tech-heavy Nasdaq outperformed its counterparts, closing at 26,107.01 with a gain of 233.83 points or 0.90%. Mega banks and financial stocks were top performers, with Goldman Sachs up by over 9%, JP Morgan rising 2.50%, and Bank of America gaining nearly 2%. AI stocks like Nvidia rallied over 4%, lifting the Wall Street.

Chip stocks such as Broadcom and Micron also contributed to the upside, closing at 1.3% and 4.9% respectively. Beyond stock-specific action, market sentiments were bullish after the US CPI inflation rate cooled down for the first time in five months.