US stocks end with gains after lower-than-expected inflation data

​​​​​​​By Mucahithan Avcioglu

ISTANBUL (AA) - US stocks ended the second trading day of the week higher as annual inflation came in below market expectations in July.

The Dow soared 1.1%, or 483.52 points, to close at 44,458.61.

The Nasdaq added 1.39%, or 296.5 points, to close at a new record of 21,681.9.

The S&P 500 also hit a new high, rising 1.13%, or 72.31 points, to close at 6,445.76.

The Volatility Index (VIX), also known as the "fear index," fell 9.35% to 14.73.

The annual inflation rate in the US was at 2.7% in July, slightly below the market expectation of 2.8%, while monthly inflation was at 0.2%.

US President Donald Trump hailed the new data, suggesting that it indicated his reciprocal tariffs had not sparked a rise in inflation or caused "any other problems" for the country.

"It has been proven, that even at this late stage, Tariffs have not caused Inflation, or any other problems for America, other than massive amounts of CASH pouring into our Treasury’s coffers," Trump wrote on American social media company Truth Social.

He stated that the US is taking "trillions of dollars" with the tariffs and that they have been "incredible" for the country, its stock market, its general wealth, and "just about everything else."

"Also, it has been shown that, for the most part, Consumers aren’t even paying these Tariffs, it is mostly Companies and Governments, many of them Foreign, picking up the tabs," the president noted.

Meanwhile, Trump announced Monday an executive order extending tariff suspension on China for another 90 days.

"All other elements of the Agreement will remain the same. Thank you for your attention to this matter!" Trump posted on Truth Social.

According to the order, the US will maintain the suspension of heightened tariffs on Chinese imports until Nov. 10, while a 10% reciprocal tariff remains in effect during the suspension.

On the data side, the federal budget deficit rose 9.4% year-on-year in July, reaching $291 billion, despite about 273% surge in tariff revenues.

The US public debt reached a new record high of $37 trillion.