The stock market surged today, with the Russell 2000 jumping nearly 3% after the July inflation report. The inflation data showed a core rate of +3.1% year-over-year, slightly above expectations, while the broader inflation rate came in at +2.7% year-over-year, below expectations. Despite the slight uptick in core inflation, the market reacted positively, as investors believe the data does not rule out a September rate cut from the Federal Reserve. This optimism led to broad gains across major indices, with the Russell 2000 posting its best performance in months, the S&P 500 closing above 6,400 for the first time, and the Nasdaq setting a record.\n\nAirlines were among the top performers, with United (UAL), Delta (DAL), and Southwest (LUV) leading the gains, followed by American (AAL), Alaska (ALK), and JetBlue (JBLU). The US Global Jets ETF (JETS) rose 7%, driven by improved guidance and the inflation report, which showed airfares rising year-over-year. Semiconductor companies like NXP Semiconductor (NXPI), ON Semiconductor (ON), and Microchip Technologies (MCHP) also gained.\n\nIn the after-hours trading, several companies reported earnings. CoreWeave (CRWV) saw a 9% drop after missing earnings by 158% despite revenue growth, while Cava Group (CAVA) fell 21% after beating EPS by 17% but missing revenue and lowering guidance. H&R Block (HRB) rose 1.2% after a modest EPS miss and revenue beat, with CEO Jeff Jones announcing his retirement.\n\nOn the negative side, Cardinal Health (CAH), Taser producer Axon Enterprise (AXON), and commercial real estate firm CoStar Group (CSGP) reported disappointing results. The Russell 3000 index, which includes both large and small caps, showed minimal red areas, with megacaps also performing well.\n\nRetail-popular growth stocks like Archer Aviation (ACHR), AST SpaceMobile (ASTS), and Oklo (OKLO) saw significant gains, driven by strong performance and ownership by individual investors rather than institutions. These stocks have outperformed the Russell 2000, with Oklo up 258% year-to-date and ASTS up 131%.\n\nEarlier in the day, the market reacted to the announcement that President Trump would nominate E.J. Antoni, chief economist of the Heritage Foundation, to lead the Bureau of Labor Statistics (BLS). Antoni has proposed pausing monthly jobs reports in favor of quarterly ones, raising concerns about data credibility amid recent layoffs at the BLS and declining response rates in government surveys.\n\nTrump also threatened to sue Federal Reserve Chair Jerome Powell over the cost of a $3 billion Fed building renovation, demanding immediate interest rate cuts. The inflation data, combined with business optimism (July Business Optimism Index at 100.3, the highest in five months), has fueled market confidence. However, concerns remain about inflation's durability and the political influence on economic data.\n\nThe day began with a strong morning move, driven by earnings from Sea Ltd (SE), Cardinal Health (CAH), Circle (CRCL), On Holdings, and Hanesbrands (HBI). Sea rose 16% after strong earnings, Circle gained 7% due to increased USDC adoption and a layer-1 blockchain announcement, and Hanesbrands surged 37% as it neared a deal to sell to Gildan. Meanwhile, Pony AI (PONY) fell 10% despite triple-digit revenue growth.\n\nOPEC also released data, raising its 2026 oil demand forecast by 100,000 barrels and predicting a tighter market. OPEC now forecasts U.S. demand at 1.4 million barrels per day, which has led to a 0.84% drop in crude oil prices to $63.42. OPEC also raised its 2025 global growth forecast to 3% from 2.9%, citing accelerating economic conditions.\n\nOverall, the market closed on a positive note, with broad-based gains across all major indices, driven by inflation data, strong earnings, and renewed investor confidence in a potential rate cut in September.

Stock Market Today: Russell 2000 jumps nearly 3% after July inflation surprise

The stock market surged on August 13, 2025, with the Russell 2000 jumping nearly 3% following a July inflation report showing a core rate of 3.1% and a broader rate of 2.7%, slightly above and below expectations respectively. Despite the core inflation uptick, investors viewed the data as not ruling out a September Federal Reserve rate cut, leading to broad market gains. Airlines, semiconductors, and growth stocks like Oklo and AST SpaceMobile outperformed. CoreWeave and Cava Group reported disappointing earnings, while H&R Block saw a modest gain on an EPS miss and revenue beat. President Trump nominated E.J. Antoni to lead the Bureau of Labor Statistics, proposing quarterly job reports over monthly ones, raising data credibility concerns. Trump also threatened legal action against Federal Reserve Chair Jerome Powell over a $3 billion building renovation, demanding immediate rate cuts. OPEC raised its 2026 oil demand forecast and 2025 global growth forecast, leading to a drop in crude oil prices to $63.42.