Soft Inflation Data and Chipmaker Gains Lift US Stock Market Higher

The US stock market ended higher on Monday as soft consumer inflation data and gains in chipmaker and cybersecurity shares lifted the indexes. The S&P 500 rose 0.4%, while the Nasdaq 100 jumped 1.1% and the Dow Jones Industrial Average remained flat.

According to the Bureau of Labor Statistics, the annual consumer price inflation rate moderated to 3.5% in June, a decline that was sharper than expected. This drop marked the first time in six years that prices fell month-over-month.

The lower-than-expected inflation reading eased concerns about an interest rate hike, with the likelihood of a rate increase at the July meeting falling sharply to 17%, down from 42% just a day earlier. While market participants continue to anticipate a hike in September, pricing in a nearly 60% probability of a quarter-to-half-point rate increase.

Nvidia (NVDA) was among the top performers, jumping 2.6% as three Chinese firms received US approval to buy its advanced H200 processors. Goldman Sachs (GS) reported record second-quarter earnings, sending its stock soaring to a new all-time high.