Market Wrap | US Core CPI Misses Expectations for Fifth Month, Sparking Rate Cut Debate

On July 15, 2025, the U.S. core CPI data fell short of expectations for the fifth consecutive month, driven by declining car prices, which has sparked debates about the effectiveness of tariffs and increased pressure on the Federal Reserve to lower interest rates. The disagreement among policymakers regarding the sustainability of tariff-induced price changes adds to the uncertainty. Meanwhile, U.S. Treasury Deputy Secretary Faulkender questioned the Federal Reserve's position post-CPI data release, hinting at potential shifts in monetary policy amidst economic uncertainties. The market reacted with the S&P 500 down 0.40%, the Dow Jones Industrial Average down 0.98%, and the Nasdaq Composite up 0.18%.

The market saw a mixed performance across various sectors. The Utilities, Healthcare, Energy, Communication Services, Materials, Industrials, Real Estate, Financials, and Consumer Staples sectors underperformed the S&P 500. Conversely, the Technology sector bucked the trend and posted gains.

Nvidia shares rose 4.04% after the company received approval to resume shipments of its China-tailored AI chip, boosting investor confidence. This news also benefited TSMC, which saw its shares rise 3.62% due to Nvidia's customer relationship. Meanwhile, Alibaba Group's shares surged 8.09% as the company's ambitious expansion into AI, health, and data centers signals strong future growth potential.

Cyclacel Pharmaceuticals saw a remarkable surge of over 272% in its stock price, driven by the company's decision to expand its share authorization, signaling potential growth and heightened investor interest. Meanwhile, Longevity Health experienced a significant rise of 115.50% following the announcement of a breakthrough in anti-aging technology that promises to enhance patient outcomes. On the other hand, Picocela's stock plummeted by 76.11% due to disappointing financial performance. BriaCell also faced a substantial decline of 61.78% after revealing a major unit offering.

Core CPI in the US has risen below expectations for the fifth consecutive month, influenced by declining auto prices, leading to debates over the impact of tariffs on consumer prices and fueling calls for the Federal Reserve to cut rates. The Federal Reserve's overnight reverse repurchase agreement usage dropped to $198.277 billion, reflecting shifts in liquidity management. Meanwhile, MP Materials saw a 20% stock surge following a $500 million deal with Apple to supply US-produced rare earth magnets. Additionally, Tesla has entered the Indian market, opening a showroom in Mumbai and announcing the pricing for its Model Y, marking a significant move into this emerging market.