# SP 500 and Nasdaq rise on cooling inflation and strong bank earnings US markets gain as inflation data and banking sector performance boost investor confidence. - **Source:** [Economic Times](https://brifing.si/source/37791137-c35a-4ffe-b6a9-fe103afc9e48) - **Published:** 2026-07-14 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/f3267e21-01c0-4c66-be93-5d4015d8b5b4 ## Market rally gains momentum US stocks advanced as June inflation data came in below expectations and major banks reported strong earnings. The SP 500 rose 0.38% while the tech-heavy Nasdaq gained 0.91%. Investors interpreted the data as reducing pressure for aggressive Fed rate hikes, with odds of a July pause jumping to 83%. ## Inflation cools more than expected The Consumer Price Index showed slower inflation in June, driven by easing energy prices. This development pushed market expectations for a July rate pause from 58% to 83%. Traders now anticipate only one 25-basis-point hike by year-end, according to CME's FedWatch tool. ## Fed Chair signals inflation control In his congressional testimony, Fed Chair Kevin Warsh outlined plans to combat inflation while suggesting rate hikes might not be necessary. However, tensions in the Strait of Hormuz continue to pressure oil prices, maintaining some inflationary concerns in energy markets. ## Banking sector starts strong Earnings season kicked off with Goldman Sachs, JPMorgan Chase and Bank of America exceeding profit expectations. Strong trading and investment banking performance indicated healthy consumer fundamentals, though Citigroup and Wells Fargo shares declined amid expense concerns. ## Tech leads market gains A semiconductor rebound drove Nasdaq's outperformance, though IBM shares tumbled after revenue warnings. Investors now await earnings reports from major tech companies in coming weeks, which could further influence market direction during the summer trading period. ## Shifting market dynamics The inflation report and banking earnings have boosted summer market confidence. However, Middle East geopolitical risks and energy price volatility could still impact Fed policy decisions. Market participants now focus on corporate earnings guidance and consumer spending trends for clearer signals. ## Sources covering this story - https://economictimes.indiatimes.com/markets/us-stocks/news/us-stocks-today-sp-500-and-nasdaq-end-higher-on-cool-inflation-data-solid-bank-earnings/articleshow/132400813.cms — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._