Victoria's Secret Stock Jumps 3.1% Amid Tame Inflation and Tariff Truce

Victoria's Secret (VSCO) shares rose 3.1% after tame inflation data and a 90-day tariff truce with China boosted hopes for a potential interest rate cut from the Federal Reserve. The retail industry could benefit from lower borrowing costs, stimulating more spending. The stock has been volatile and down 45.3% since the year began, trading 54.6% below its 52-week high.

Victoria's Secret (VSCO) shares surged by 3.1% on July 2, 2025, following a report of tame inflation data and a 90-day tariff truce between the U.S. and China. The retail industry, including Victoria's Secret, may benefit from potential interest rate cuts from the Federal Reserve, which could lower borrowing costs and stimulate spending. The stock has been volatile, down 45.3% year-to-date, trading 54.6% below its 52-week high [1].

Inflation data released on August 12, 2025, showed that the consumer price index (CPI) rose by 0.2% in July, a modest increase that left the case for a Federal Reserve interest-rate cut intact [2]. The U.S. dollar eased against the euro, reflecting market expectations of a Fed rate reduction next month. Additionally, the Australian dollar dipped after the Reserve Bank of Australia's widely-expected rate cut, while the British pound strengthened due to positive jobs data [2].

The 90-day tariff truce between the U.S. and China has also boosted investor confidence. The pause in tariffs has provided a temporary respite for businesses, including retailers, from the impact of trade tensions [4]. This truce, along with the subdued inflation data, has led to speculation that the Federal Reserve may cut interest rates in September, which could provide a boost to the retail sector.

Victoria's Secret has been facing challenges, with shares down 45.3% since the beginning of the year. However, the recent market movements suggest that investors are optimistic about the potential benefits of lower interest rates. The stock has been trading 54.6% below its 52-week high, indicating significant volatility [1].

The Federal Reserve's decision to potentially cut interest rates could have a positive impact on the retail industry by making borrowing cheaper and encouraging consumer spending. This could potentially help Victoria's Secret and other retailers in the sector.

References:
[1] https://finance.yahoo.com/quote/VSCO/news/
[2] https://www.reuters.com/world/middle-east/dollar-eases-us-inflation-data-keeps-september-rate-cut-table-2025-08-12/
[4] https://finimize.com/content/emerging-markets-stay-steady-as-tariff-truce-and-inflation-data-loom