US Markets Highlights — Jul 16, 2026 | Aivina
July 16, 2026
US markets experienced significant events this week, with inflation data showing a welcome cooling, as May's CPI was flat month-over-month. Despite this, the Federal Reserve maintained its cautious stance, holding interest rates steady and projecting only one rate cut for 2024. The S&P 500 and NASDAQ still managed to hit new record highs, primarily driven by continued strength in the tech sector and optimism surrounding artificial intelligence.
Highlights
- US inflation data cooled; May CPI flat month-over-month; annual rates eased.
- Federal Reserve held rates; FOMC projected one 2024 cut; Powell maintained cautious stance.
- S&P 500, NASDAQ reached new highs; tech stocks drove market gains; AI optimism persisted.
Macro Overview
Inflation
Latest CPI data showed significant cooling, with May's headline inflation flat month-over-month and annual rates easing to 3.3%.
Interest Rate Outlook
Fed held rates; dot plot projects one 2024 cut. This reduces prior expectations, signaling a cautious approach.
Risk Sentiment
neutral
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