US Dollar Losing? This Is What Happened In The Money & Stock Markets After The CPI Data

<p>&nbsp;U.S. stocks surged on Wednesday as traders welcomed new data showing inflation rose less than expected last month.</p><p><br /></p><p>The Dow Jones Industrial Average traded 219 points higher, or 0.6%. The S&amp;P 500 gained 0.9%, and the Nasdaq Composite rose 1.2%. The S&amp;P 500 hit a new high for 2023 and the highest level since April 2022.</p><p><br /></p><p>The consumer price index rose 3% year-on-year in June. Economists polled by Dow Jones had expected a 3.1% increase. Month-on-month, the index rose 0.2% last month, also less than forecast. Also, the core CPI which excludes volatile food and energy prices also rose less than expected.</p><p><br /></p><p>Betsy Stevenson, professor of economics and public policy at the University of Michigan said the Federal Reserve needs to give the economy some time for its rate hikes to continue working through the system.</p><p><br /></p><p><br /></p><p>June data for the producer price index, another closely watched measure of inflation will be released this Thursday.</p><p><br /></p><p>Both price indices are being watched by investors for potential signs of how the Federal Reserve will move interest rates going forward. Markets are pricing in about a 92% chance the Fed will raise interest rates at the July meeting, according to CME's FedWatch Tool.</p><p><br /></p><p>Shares closed higher on Tuesday. The Dow Jones ended more than 300 points higher, equaling a gain of about 0.9%, while the S&amp;P 500 and Nasdaq Composite rose nearly 0.7% and 0.6%, respectively.</p><p><br /></p><p>The US dollar index which measures the US dollar against six major currencies traded down 0.86% to trade at 100.528 after the CPI data was released.</p>