The S&P 500 maintains a cautiously bullish stance after yields fell significantly below last month’s levels. July’s slower CPI print restored investor confidence following June’s acceleration, while Chinese tariff pause developments provided additional support. Scott Bessent suggested Treasury operations aim to drive Fed cuts by 150-175 bps. Today’s PPI data remains crucial for gauging tariff impact on input prices. With fiscal dominance evident, a September rate cut could fuel asset price inflation despite inflationary risks.
Key Levels: Support at 6,426.7 | Resistance at 6,506.9
Investor Takeaway: RSI convergence and fading MACD selling pressure support near-term bullishness, but fiscal policy keeps inflation concerns alive.