Stocks Jump Amid Inflation Report, e.l.f. Beauty, Edgewell Personal Care, Herbalife, Olaplex, BeautyHealth See Significant Gains

Several stocks, including e.l.f. Beauty, Edgewell Personal Care, Herbalife, Olaplex, and BeautyHealth, jumped in the afternoon session after a subdued inflation report fueled hopes for an imminent interest rate cut from the US Federal Reserve. The stocks rallied as investors viewed the tamer-than-expected inflation data as a key signal that price pressures are easing, boosting corporate profitability and stimulating economic activity. The prospect of lower borrowing costs tends to boost consumer-facing companies and fuel a broad-based market rally.

U.S. stock markets extended their gains on Tuesday, with the Dow Jones rising by more than 1% following a favorable inflation report. The Dow Jones gained 1.03% or 450 points at 10:24 am ET, the Nasdaq 100 added 0.50%, and the S&P 500 grew by 0.58% [1].

The annual inflation rate remained unchanged at 2.7% in July, lower than predicted by analysts, which contributed to the positive market sentiment. The U.S. and China's decision to extend the tariff pause for 90 days also positively impacted the markets [1].

The euro traded 0.34% higher compared to the dollar and reached 1.16543 at 10:28 am ET, further bolstering the market's optimism [1].

In related news, U.S. Treasury Secretary Scott Bessent reiterated his call for a half-point interest rate reduction at the Federal Reserve's next meeting in September. Bessent suggested that the central bank's benchmark ought to be at least 1.5 percentage points lower than its current range of 4.25% to 4.5% [2].

The dollar slipped for a second consecutive session on Wednesday, driven by expectations of a Federal Reserve rate cut next month and renewed pressure from President Donald Trump for lower rates [3]. The dollar index DXY fell 0.2% to 97.856, its lowest since July 28, extending its 0.5% drop on Tuesday [3].

Several stocks, including e.l.f. Beauty, Edgewell Personal Care, Herbalife, Olaplex, and BeautyHealth, jumped in the afternoon session after the subdued inflation report fueled hopes for an imminent interest rate cut from the US Federal Reserve. The July Consumer Price Index (CPI) report showed a year-over-year increase of 2.7%, which was slightly below market expectations. This tamer-than-expected inflation data was viewed by investors as a key signal that price pressures are easing, boosting corporate profitability and stimulating economic activity [4].

References:
[1] https://news.az/news/us-stocks-rise-as-dow-gains-1
[2] https://www.theguardian.com/business/live/2025/aug/13/us-treasury-secretary-scott-bessent-half-point-interest-rate-cut-fed-inflation-business-live-
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3U50Q6:0-dollar-slips-further-as-anticipation-mounts-of-fed-interest-rate-cut/
[4] https://finance.yahoo.com/news/e-l-f-beauty-edgewell-211043065.html