US Markets Highlights — Jul 21, 2026 | Aivina
July 21, 2026
US equity markets achieved new highs this week, with the S&P 500 and Nasdaq Composite driven by robust performance in the tech sector, particularly Nvidia. This surge occurred despite the Federal Reserve maintaining interest rates and projecting only one rate cut for 2024, a more hawkish stance than previously anticipated. However, cooler-than-expected May inflation data, including CPI and PPI, bolstered investor confidence, suggesting inflationary pressures are easing and supporting a generally positive market sentiment.
Highlights
- S&P 500, Nasdaq reached new highs; tech sector propelled indices; Nvidia led market gains.
- May CPI cooled more than expected; inflation showed signs of easing; boosted market sentiment.
- Fed maintained interest rates; policymakers projected one 2024 cut; cautious stance on easing.
Macro Overview
Inflation
May CPI and PPI data cooled significantly, showing encouraging signs of deceleration and coming in softer than anticipated.
Interest Rate Outlook
Fed held rates steady; new dot plot indicated only one 25bp cut in 2024, dampening aggressive easing hopes.
Risk Sentiment
bullish
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