Stocks Climb on Tame Inflation, Big Bank Profits, Apple Fuels Rare Earth Rally with $500M MP Deal

U.S. equities opened on firmer footing Tuesday morning, with all major indexes posting early gains as investors digested a cooler-than-expected inflation reading and upbeat bank earnings. The Dow Jones Industrial Average edged up 7.69 points, or 0.02%, to 44,467.30. The S&P 500 climbed 31.59 points, or 0.50%, to 6,300.15, while the Nasdaq Composite jumped 186.28 points, or 0.90%, to 20,826.60.

The upbeat tone was buoyed by the latest Consumer Price Index (CPI) report from the Bureau of Labor Statistics, which showed prices rose 0.3% in June, following a 0.1% gain in May. The year-over-year increase now stands at 2.7%, up slightly from 2.4% in May. Notably, core inflation—which excludes food and energy—rose 0.2% month-over-month and 2.9% over the past year. The data suggests inflation remains under control, potentially giving the Federal Reserve additional leeway on interest rates.

Crude oil and gold prices dipped modestly at the open. August crude (CL=F) traded at $66.86, down 0.18%, while August gold (GC=F) slipped 0.14% to $3,354.40.

Banking majors were in focus following a wave of premarket earnings releases. Wells Fargo (WFC) topped Q2 expectations, posting earnings per share of $1.60 and net income of $5.49 billion, but shares fell 3.3% after the lender cut its full-year net interest income (NII) guidance. The bank now expects FY2025 NII to be roughly flat compared to 2024’s $47.7 billion, citing softer Markets performance. “Investors may be taking profits after the stock’s strong run into earnings,” the report noted.

JPMorgan Chase (JPM) also beat on the top and bottom lines, with adjusted EPS of $4.96 and net income of $15.0 billion. The firm saw strength in trading, investment banking, and credit card lending. Despite the beat, JPM shares slipped 0.3%, as investors appeared to “sell the news” after a recent rally. CEO Jamie Dimon cautioned about “persistent risks including tariffs, geopolitical tensions, and elevated asset prices”.

Meanwhile, tech and industrial sectors were energized by a major announcement involving MP Materials (MP). Shares of the rare earth miner soared over 11% in early trading after Fox News Digital reported Apple (AAPL) is investing $500 million in the company and will co-build a magnet manufacturing facility in Fort Worth, Texas. The deal follows a $400 million investment by the U.S. Department of Defense last week, making the Pentagon MP’s largest shareholder. The dual investments mark a strategic shift toward a fully domestic rare earth supply chain.

“This is a huge win for the president, who had the foresight to make this issue a priority,” a senior White House official told Fox News Digital. “Apple deserves a lot of credit for stepping up. It’s good for the country, good for American workers, and it’ll prove to be good business, too”.

As earnings season kicks off in earnest and inflation continues to moderate, investors appear cautiously optimistic—welcoming strong corporate results while remaining vigilant about macroeconomic headwinds.