The New York stock exchange started the day on a mixed note, as expectations for short-term interest rate hikes by the US Federal Reserve (Fed) weakened after annual inflation in the US was below expectations in June.
At the opening, the Dow Jones index decreased by 0.86 percent to 52,046.36 points.
The S&P 500 index increased by 0.28 percent to 7,536.70 points and the Nasdaq index increased by 0.55 percent to 26,015.49 points.
While investors focused on the inflation data announced in the USA, the second quarter balance sheets of major banks and the presentation to be made by Fed Chairman Kevin Warsh to Congress, a mixed course was observed in the stock markets at the opening.
According to the data announced today in the USA, the Consumer Price Index (CPI) decreased by 0.4 percent on a monthly basis in June, while it increased by 3.5 percent on an annual basis, below expectations.
Thus, CPI decreased on a monthly basis for the first time since May 2020.
The decline in energy costs was decisive in the decline in monthly inflation by balancing the price increases in other items, especially housing and food.
Core CPI, which does not include variable energy and food prices, remained unchanged on a monthly basis in June, but remained below expectations with an increase of 2.6 percent on an annual basis.
Following the inflation data, expectations that the Fed may raise interest rates in the near future have weakened somewhat in the pricing in money markets.
Analysts stated that inflation data indicate that price pressures caused by conflicts in the Middle East have eased, but this relief may be temporary due to the tensions that have escalated again between the USA and Iran in recent days.
While the mid-term monetary policy report that Fed President Kevin Warsh will present to Congress today and tomorrow is also in the focus of investors, the text of Warsh's speech to the House of Representatives Financial Services Committee today has been published.
In his speech, Warsh emphasized that they have no tolerance for high inflation and their determination to re-establish price stability.
On the corporate side, while balance sheets are followed by investors, US banks started to announce their second quarter balance sheets.
In the second quarter of this year, JPMorgan Chase's net profit increased by 41 percent, Bank of America's profit by 27 percent, Goldman Sachs' profit by 78 percent, Wells Fargo's profit by 17 percent and Citigroup's profit by 45 percent.
Shares of Goldman Sachs rose more than 3 percent after the bank's second-quarter profit beat expectations.
By contrast, shares of JPMorgan Chase and Citigroup fell more than 2 percent despite increases in second-quarter profits. Shares of Bank of America and Wells Fargo also fell by 0.8 percent and over 3 percent, respectively, even though their second-quarter profits exceeded expectations.
Shares of technology company IBM lost 22 percent after its leading revenue forecast for the second quarter fell below expectations.
On the geopolitical side, while the escalating tension between the USA and Iran and the situations regarding the Strait of Hormuz were followed, the upward trend in oil prices continued.