All three US stock market benchmarks closed around 0.3% lower overnight, the Nasdaq down 0.4%, after inflation continued to accelerate.
According to the initial release, inflation moved 0.9% higher in June, taking the annual pace to 5.4% from 5% in May, the fastest since 2008.
Once again, the cost of used cars contributed over one-third of the increase, but food, energy and housing prices also contributed.
The core, less volatile measure also increased 4.5% from 3.8%.
Bank profits double
Goldman Sachs (NYSE: GS) profit doubled to US$5.5 billion for the quarter on revenue of US$15.4 billion as a boom in corporate activity and takeovers benefitted the group’s dealmakers. The funds management division saw revenue double to over US$5 billion, overcoming a 32% fall in the group’s trading operations as lower volatility reduced the demand for hedging; shares fell 1.1% on the news.
JP Morgan (NYSE: JPM) delivered a similarly strong result, nearly tripling quarterly profit to US$11.9 billion despite an 8% fall in revenue, the bank benefitting from a reversal of pandemic-era loan writedown reversals.
JPMorgan’s investment banking fees rose 25% on the back of a series of major IPOs, trading revenue fell 30%, whilst the traditional bank saw a further 8% fall in interest income as low interest rates continue to bite; shares were 1.7% lower.
US stock market movers
Here’s how other popular US stocks performed on Tuesday.
- JD.com (NASDAQ: JD) up 4.6%
- Farfetch (NSYE: FTCH) up 3.0%
- PepsiCo (NASDAQ: PEP) up 2.3%
- Tesla (NASDAQ: TSLA) down 2.5%
- Boeing (NYSE: BA) down 4.2%
- Affirm (NASDAQ: AFRM) down 10.5%
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is set to open broadly flat on Wednesday. For all the latest, check out Rask Media’s ASX 200 morning report.