[Chart courtesy of MarketWatch.com]

1. Moving the market

Stocks managed to grind higher today, with the S&P 500 notching another intraday record as investors welcomed a softer-than-expected inflation backdrop.

July producer prices came in cooler than forecast, reinforcing the idea that inflation pressures aren’t accelerating, even if the Fed isn’t quite ready to declare victory.

The market’s reaction was telling: bond yields initially moved lower, oil prices slid before recovering, and equities kept their footing.

By the close, the Nasdaq was again the leadership group, while the Dow trailed. Interestingly, the Mag 7 still couldn’t outshine the other 493 names in the S&P 500, a reminder that this rally has broadened beyond the usual AI superstars.

Elsewhere, the dollar finished mostly unchanged, gold slipped below $4,400, and Bitcoin found buyers around the $62,000 level after another shaky session.

As for the AI boom, today’s debate centered on whether investors are focusing on the right risks. History shows that market narratives often look much clearer in hindsight than they do in real time.

So, with inflation allegedly behaving, the broad market holding up, and leadership continuing to expand, is the next leg higher going to come from the forgotten stocks rather than the market’s biggest celebrities?

[Chart courtesy of MarketWatch.com]

1. Moving the market

Stocks got an early boost from a friendly inflation report, with July CPI coming in right on cue and reinforcing the view that the Fed can afford to stay on the sidelines for now.

AI favorites like CoreWeave and Super Micro helped lead the charge, but the broader market’s reaction was surprisingly muted.

What really stood out was the lack of enthusiasm. Cooling inflation and softer growth data should have been prime fuel for the bulls, yet the Magnificent Seven largely sat this one out while the other 493 S&P stocks did most of the heavy lifting.

Bond yields initially fell, then reversed course, and the dollar took investors on a roller-coaster ride before ending near where it started.

Gold, meanwhile, couldn’t care less about the dollar’s gymnastics, quietly climbing above $4,400, while Bitcoin spent the day practicing its zigzags.

With another inflation report arriving tomorrow (PPI), the market seems comfortable for now, but is that confidence justified, or are investors about to get a reminder that the Fed story isn’t finished yet?

[Chart courtesy of MarketWatch.com]

1. Moving the market

Today’s market action was a reminder that headlines still matter. The S&P 500 lost ground as optimism about a reopening of the Strait of Hormuz faded, pushing oil prices higher and putting pressure on stocks, especially some of the market’s biggest technology names.

Communication services and technology led the retreat, with Alphabet, AppLovin, Apple, and even Nvidia struggling to find traction.

Interestingly, Nvidia couldn’t hold onto its gains despite announcing a massive AI infrastructure initiative, suggesting investors may be more focused on near-term risks than long-term opportunities.

Meanwhile, bonds seemed less concerned, with yields slipping, while the dollar was little changed. Gold and Bitcoin both eased back as traders took a cautious stance ahead of this week’s inflation reports.

At this point, the market feels like it’s caught between two worries: higher oil prices on one side and a slowing economy on the other.

With CPI tomorrow and PPI on Thursday, traders are about to find out whether inflation is cooling enough to comfort the Fed, or whether the latest energy spike throws another wrench into the outlook.

So, the question is: will the inflation data give stocks a reason to rally, or simply provide the market with a fresh set of worries?