Stocks Open Higher as July CPI Lands Near Forecasts, Investors Parse Sector Swings

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U.S. stocks opened higher Tuesday, with the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite advancing as investors digested a July inflation report that largely matched expectations and kept hopes alive that the Federal Reserve can begin easing this fall. Futures had pointed to a positive start following the data, which were released just before the opening bell, according to Reuters. Reuters

The Consumer Price Index rose 0.2% in July from the prior month and 2.7% from a year earlier, the Labor Department said. The “core” CPI—excluding food and energy—advanced 0.3% on the month and 3.1% year over year. The report showed shelter costs up 0.2% on the month, while energy prices fell 1.1% as gasoline declined 2.2%. Airline fares rose 4.0%. Together, the figures reinforced the picture of easing headline inflation but stickier services pressures that the Fed has been watching closely. (All figures seasonally adjusted unless noted.)

Under the surface, the composition of inflation remained a focal point for markets. Goods categories were generally tame—helped by cheaper gasoline—while services stayed comparatively firm, led by medical care and transportation. That divergence echoed the broader BLS breakout, which showed “all items less food and energy” up 0.3% on the month and 3.1% on the year, with shelter still a notable contributor.

Corporate headlines also colored the early tone. In energy and industrials, CFRA highlighted Baker Hughes’s late-July agreement to acquire Chart Industries for $210 a share in cash, a move the research firm expects will tilt Baker Hughes more toward its Industrial & Energy Technology segment; CFRA said the deal is expected to close in the fourth quarter of 2025. Such portfolio shifts and consolidation in energy infrastructure remain in focus for investors navigating a market where services inflation is sticky and capital spending tied to power and liquefied-gas equipment is rising.

In the AI-power and nuclear space, Wedbush reiterated an Outperform rating on Oklo and lifted its 12-month price target to $80 from $75, citing progress on licensing and U.S. policy support aimed at accelerating nuclear deployment. The firm noted Oklo recently completed Phase 1 of the NRC readiness assessment for its Aurora-INL license application. While company-specific, the note underscores how power availability and electrification themes continue to intersect with equity narratives around AI data-center buildouts. (Wedbush report.)

With the CPI out, attention turns to Federal Reserve communication later today. Market participants will listen for color from Governor Michelle Bowman and Richmond Fed President Thomas Barkin on how they interpret the latest inflation mix of softer headline and firmer services.