Traders work on the floor of the New York Stock Exchange at the opening bell on April 9, 2025.
Timothy A. Clary | Afp | Getty Images
Stock futures rose early Tuesday as investors breathed a sigh of relief over a tamer-than-expected inflation report.
Futures tied to the Dow Jones Industrial Average added 166 points, or 0.4%. Nasdaq 100 futures rose 0.4%, and S&P 500 futures traded 0.3% higher.
Tuesday’s fresh inflation data release reassured investors, who have feared that President Donald Trump’s broad tariff policies could spike prices in the U.S. economy.
The consumer price index rose 2.7% on an annualized basis in July, while a Dow Jones estimate had called for a 2.8% rise. So-called core CPI, which strips out volatile food and energy prices, increased by 3.1% year on year — slightly more than the expected 3%.
Investors were betting that this inflation report was tame enough for the Federal Reserve to cut interest rates multiple times this year. The market is currently pricing in a nearly 91% chance of a rate cut next month, per trading data from the CME’s FedWatch Tool. That’s up from a 85% chance before the data release. Traders also increased their bets on rate cuts in October and December.
The report comes as traders weigh the latest developments on the tariff front. President Donald Trump said Monday he’d extend a 90-day pause on higher levies on Chinese goods.
“Investors seem to be betting on upcoming interest rate cuts and counting on them to counteract the drag from tariffs. We think it is too early to make that assumption,” said Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management. “The degree of tariff impacts and how long they will take to work through the economy remain open questions. In the meantime, high equity valuations may heighten the impact any negative developments have on stock returns.”
Shares of Intel added 4% on Tuesday morning after President Donald Trump flip-flopped his view on Intel CEO Lip-Bu Tan, calling him a “success” days after demanding his resignation. Stablecoin issuer Circle Internet Group jumped 11% after reporting a 53% year-over-year rise in its second-quarter revenue.
Wall Street will also parse Thursday’s producer price index report for a reading on wholesale inflation. Both reports come ahead of the Fed’s Jackson Hole gathering at the end of August, ahead of the central bank’s September policy meeting.
Stocks making the biggest moves premarket
Check out the companies making headlines before the bell.
Hanesbrands, Gildan Activewear — The T-shirt maker surged more than 42% after the Financial Times reported, citing people familiar with the matter, that Hanesbrands was nearing a deal to be acquired by Gildan for nearly $5 billion. Gildan shares slid more than 5%.
Sinclair — Shares soared more than 18% after Sinclair, one of the largest owners of television stations, started a strategic review of its business that could result in a merger or spinoff of its Ventures business.
On Holding AG — U.S. shares of the Swiss sportswear company rallied about 11%. On reported second-quarter revenue of 749 Swiss francs, exceeding the expectation for 705 million francs from analysts polled by LSEG. The company also hiked its full-year revenue guidance.
Read the full list here.
— Sarah Min
Headline CPI rises less than expected year over year
The consumer price index expanded by 2.7% in July on a year-over-year basis, less than economists expected. Economists polled by Dow Jones anticipated an annual expansion of 2.8%. So-called core CPI, which strips out food and energy prices, increased by 3.1% year on year — slightly more than anticipated.
— Fred Imbert
Intel rises 4% after Trump flip-flops on Intel CEO, calling him a ‘success’
President Donald Trump flip-flopped his view on Intel CEO Lip-Bu Tan, calling him a “success” days after demanding his resignation.
“I met with Mr. Lip-Bu Tan, of Intel, along with Secretary of Commerce, Howard Lutnick, and Secretary of the Treasury, Scott Bessent,” Trump wrote in a Monday post on Truth Social. “The meeting was a very interesting one. His success and rise is an amazing story. Mr. Tan and my Cabinet members are going to spend time together, and bring suggestions to me during the next week. Thank you for your attention to this matter!”
The president’s latest tone marked a shift in sentiment from last week. In a Truth Social post from last Thursday, Trump had said that Tan “is highly CONFLICTED and must resign, immediately. There is no other solution to this problem.”
Shares of Intel were last trading 4% higher in Tuesday’s premarket session.
INTC 5D chart
— Jordan Novet, Lisa Kailai Han
Trump signals openness to letting Nvidia sell a downgraded version of its most advanced chip to China
Nvidia CEO Jensen Huang delivers remarks next to U.S. President Donald Trump at an ‘Investing in America’ event in Washington, D.C., on April 30, 2025.
Leah Millis | Reuters
Speaking at a press conference on Monday, President Donald Trump signaled that he’d be open to allowing Nvidia to sell a downgraded version of Blackwell, its most advanced artificial intelligence chip, to China.
Specifically, the president said that he would consider making a deal with Nvidia if it could reduce the performance of the system.
“It’s possible I’d make a deal” on a “somewhat enhanced — in a negative way — Blackwell” processor, Trump said. “In other words, take 30% to 50% off of it.”
The news comes after Nvidia and AMD agreed to pay 15% of revenues from chip sales to China to the U.S. government in exchange for export licenses.
— Arjun Kharpal, Lisa Kailai Han
Circle stock jumps 7% after reporting 53% surge in second-quarter revenue
Traders work on the floor at the New York Stock Exchange on the day of Circle Internet Group’s initial public offering on June 5, 2025.
Brendan McDermid | Reuters
Shares of Circle Internet Group jumped 7% on Tuesday morning after releasing its first quarterly earnings report as a publicly listed company.
CRCL 5D chart
The stablecoin issuer reported that its second-quarter revenue had risen to $658.1 million from $430 marking in the year-prior period, marking a 53% increase. The company attributed this jump to strong growth in stablecoins.
Circle is the issuer of USD Coin, or USDC, which is the second largest stablecoin in the world behind Tether’s USDT.
— Tanaya Macheel, Lisa Kailai Han
Hanesbrands rallies on report of Gildan acquisition
HBI vs GIL
— Fred Imbert
Asia-Pacific markets close mostly higher
Asia-Pacific markets mostly closed higher Tuesday.
Hong Kong’s Hang Seng Index rose 0.25% to close at 24,969.68, while mainland China’s CSI 300 index increased by 0.52% to 4,143.83.
Meanwhile, South Korea’s Kospi index fell 0.53% to close at 3,189.91, while the small-cap Kosdaq lost 0.57% to 807.19.
Australia’s S&P/ASX 200 benchmark advanced 0.41% at 8,888.80.
Japan’s Nikkei 225 benchmark pared earlier gains to rise 2.15% at 42,718.17, while the broader Topix index added 1.39% to 3,066.37.
Over in India, the 50-stock benchmark Nifty 50 was flat, while the BSE Sensex index ticked down 0.12% as of 1:52 p.m. Indian Standard Time (4:23 a.m. ET).
— Amala Balakrishner
Specialty chemical company Celanese shares crater 15% after disappointing forecast
Pavlo Gonchar | SOPA Images | Lightrocket | Getty Images
Specialty chemical company Celanese shares tumbled 15% after the bell following its warning that it sees “a softening demand environment across most key end-markets in the second half of the year.”
The company said its order books “are developing at a slower pace so far compared to last quarter” and it expects third-quarter earnings to fall between $1.10 and $1.40 per share. That forecast is sharply below the $1.73 per share consensus estimate from LSEG.
The news came as Celanese reported a strong second quarter, with both earnings and revenue solidly outpacing Wall Street estimates.
— Christina Cheddar Berk
Sinclair stock soars as it weighs merger options
The Sinclair Broadcast Group, Inc. headquarters are seen July 17, 2024 in Cockeysville, Maryland.
Kevin Dietsch | Getty Images
One of the largest owners of U.S. TV broadcast stations, Sinclair, has embarked on a strategic review of its business, which could result in a merger or a possible spinoff of its ventures business. The news sent shares of Sinclair soaring 27% in extended trading, and it follows on the heels of earlier reports that Nexstar Media Group is in talks to buy Tegna. Tegna shares gained 30% on Monday, while Nexstar added 4%.
— Christina Cheddar Berk
Stock futures are little changed on Monday
Stock futures were little changed on Monday evening, as investors turn their attention to the forthcoming July consumer price index report.
Futures tied to the Dow Jones Industrial Average hovered near the flatline, alongside S&P 500 futures. Nasdaq 100 futures added 0.03%.
— Brian Evans