Market Rundown: Stocks Surge on Fed Rate Cut Hopes, Trump Criticizes Powell

US Market Surge on CPI Data

• 📈 Global stocks rallied with US markets reaching new highs following Tuesday's CPI print.
• 💡 Traders found comfort in the fact that tariff-exposed goods did not rise as much as expected, signaling potential for the Fed to resume easing in September.
• ⚠️ Some investors are justifying the possibility of a 50 basis point Fed cut, though another inflation report and employment data are still pending.

Trump's Criticism of Fed Chair Powell

• 🗣️ President Trump resumed his criticism of Fed Chair Powell, warning he is weighing a lawsuit over the central bank's headquarters renovation.
• 🔍 The renovation project's cost overruns have drawn scrutiny, and separately, the administration is reportedly considering how jobs data is collected.

European Leaders and Ukraine

• 🤝 European leaders and Ukrainian President Zelensky will hold a call with President Trump today ahead of his meeting with Russian leader Putin.
• 🚫 Zelensky stated his government will not cede any territory in peace talks, and European leaders pledged continued support for Ukraine's sovereignty.
• 😟 Concerns are rising that Trump and Putin might strike a deal that ignores key demands from Ukraine and European allies.

Oil Prices and US Production

• 🛢️ Oil prices are holding steady despite White House reiterations that talks may not lead to a breakthrough in the conflict.
• 📉 US oil output is now expected to fall in 2026 as prices slide, marking the first annual drop in production since 2021.

Japan's Inflation and Political Speculation

• 📊 Japan's annual wholesale inflation fell to 2.6% in July, marking a fourth straight month of declines.
• 📈 However, rising prices for food and agricultural goods keep alive expectations of an interest rate hike by the Bank of Japan.
• 🤔 Speculation continues regarding Prime Minister Ishiba's potential resignation after dismal upper house elections.