WS #12070
June CPI fell 0.4% MoM (largest drop since April 2020), annual rate to 3.5% vs 3.8% expected; core flat MoM at 2.6% YoY. Market odds of July rate hike collapsed from ~42% to ~12%, fueling a rally in growth/tech stocks and bonds. IBM reported Q2 revenue $17.2B vs $17.86B est., with CEO citing clients shifting capex to supply-constrained infrastructure. Shares plunged >25% in worst single-day drop in 115-year history, dragging Dow and software sector.
June CPI Disinflation Surprise
June CPI fell 0.4% MoM (largest drop since April 2020), annual rate to 3.5% vs 3.8% expected; core flat MoM at 2.6% YoY. Market odds of July rate hike collapsed from ~42% to ~12%, fueling a rally in growth/tech stocks and bonds.
IBM reported Q2 revenue $17.2B vs $17.86B est., with CEO citing clients shifting capex to supply-constrained infrastructure. Shares plunged >25% in worst single-day drop in 115-year history, dragging Dow and software sector.