Wall Street's Future Predictions Indicate a Slightly Optimistic Outlook
Consumer Price Index Increases Slightly in July, Falling Short of Forecasts
The U.S. Labor Department reported a slightly lower than expected increase in the Consumer Price Index (CPI) for July 2025, with a month-over-month rise of 0.2% and an annual increase of 2.7%, matching June's 12-month increase.
Economists had predicted a slightly higher annual increase of 2.8% for July, up from 2.7% in June. However, the actual annual increase remained at 2.7%, suggesting that inflationary pressure continues but is not accelerating beyond expectations in July.
In the monthly breakdown, the core CPI, which excludes food and energy, rose 0.3% month-over-month in July, up to a 3.1% annual increase — higher than June’s 2.9% core CPI annual rise.
The July CPI increase reflected rising prices in shelter, medical care, airline fares, household furnishings, and used cars, while gasoline and new car prices declined.
Elsewhere in the financial world, European shares are trading broadly down. The CAC 40 Index of France is adding 8.09 points or 0.11 percent, the German DAX is losing 134.54 points or 0.56 percent, the U.K. FTSE 100 Index is gaining 3.36 points or 0.04 percent, the Swiss Market Index is declining 15.56 points or 0.13 percent, and the Euro Stoxx 50 Index is down 0.32 percent.
In Asia, Japanese markets rallied, with the Nikkei average jumping 2.15 percent to 42,718.17, and the Topix index closing up 1.39 percent at 3,066.37. Hong Kong's Hang Seng index ended 0.25 percent higher at 24,969.68, while China's Shanghai Composite index rose half a percent to 3,665.92.
Meanwhile, investors have been keenly following the meeting between President Donald Trump and Russian Leader Vladimir Putin. Trump described the meeting as a 'feel-out meeting.'
In the U.S., the Southern Economic Development Council Annual Conference will feature a speech by Kansas City Fed President Jeffrey Schmid on monetary policy and the economic outlook at 10.30 am ET.
The U.S. major averages eventually ended the day in negative territory. As of 8.10 am ET, the Dow futures were adding 12.00 points, the S&P 500 futures were gaining 0.50 points, and the Nasdaq 100 futures were adding 13.00 points.
A six-week Treasury Bill auction will be held at 11.30 am ET, and the U.S. Treasury Statement for July will be released at 2.00 pm ET.
| Measure | June 2025 Actual | July 2025 Forecast | July 2025 Actual (BLS) | |----------------------------|------------------|--------------------|------------------------| | Monthly CPI increase | 0.3% | ~0.2-0.27% | 0.2% | | Annual CPI increase (YoY) | 2.7% | 2.8% | 2.7% | | Monthly Core CPI increase | 0.2% | 0.3%-0.33% | 0.3% | | Annual Core CPI increase | 2.9% | ~3.0%-3.08% | 3.1% |
Richmond Fed President Thomas Barkin will speak on "Why the Consumer Matters" before the Health Management Academy at 10.00 am ET.
- CNN Business
- Bloomberg
- The Wall Street Journal
- Reuters
- MarketWatch
- Despite the slightly lower-than-expected increase in the Consumer Price Index (CPI) for July 2025, some analysts at CNN Business believe the continued rise in the core CPI could indicate ongoing inflationary pressure in the business sector, potentially affecting investing strategies in the finance industry.
- The falling short of CPI forecasts in July 2025 has led to a cautious outlook among investors at The Wall Street Journal, with the slight increase likely to have less impact on their investing decisions due to the ongoing inflationary pressure, especially in sectors like housing, medical care, and used cars.
