Market Minute ⏱️ 8/12/25: Wall Street Breathes Easier After CPI

Mike Larson | Editor-in-Chief

Wall Street was holding its breath ahead of this morning’s inflation data – and now, it’s breathing easier. Stocks are rallying, bonds are stabilizing alongside gold and silver, and the dollar is modestly weaker.

Now, let’s talk about those numbers. Economists expected the headline Consumer Price Index (CPI) to rise 0.2% in July and the core CPI to climb 0.3%...and that’s exactly what happened. Behind the headline figures, the big story is that tariff hikes are NOT resulting in widespread, painful price hikes...at least not yet. Prices for “core goods excluding new vehicles and used cars and trucks” rose just 0.2% in July, down from 0.5% in June.

July CPI (Headline, Core; YOY % Change)

With a Fed meeting set for Sept. 16-17, investors are closely watching anything and everything that could shift the momentum in favor of (or against) a rate cut. This data keeps a potential 25-basis-point rate reduction firmly in play.

Meanwhile, President Trump just extended the current 90-day trade détente between the US and China for another 90 days. The deadline extension means that the US will continue to charge a 30% tariff on Chinese imports, while China will continue to charge a 10% levy on US imports.

Finally, stablecoins and stablecoin growth have been all the rage in the cryptocurrency arena. Now, we’ve just gotten the first post-IPO earnings release from USDC issuer Circle Internet Group Inc. (CRCL) – and it reveals a LOT about growth in the space.

Circle said USDC circulation surged 90% year-over-year in the quarter ended June 30. Revenue and reserve income jumped 53% to $658 million, even though the company reported a net loss of $482 million thanks to non-cash charges tied to its Initial Public Offering. CRCL’s IPO priced at $31, opened at $69 on June 5, traded as high as $103.75 that day, and were recently changing hands around $173. Gensler.

Brodrick + Bruni + Hirsch: Top Stock Picks for the Back Half of 2025

In Two Months: Get LIVE Portfolio Help from the Nation’s Top Financial Experts!

• From Anas Alhajji on energy, Brian Belski on stocks, and Peter Schiff on precious metals…to Nancy Davis on fixed income, Charles Payne on markets, and John Person on trading, you’ll get to tap into an UNPARALLED expert network Oct. 16-18.

• Enjoy 100+ powerful keynotes, workshops, and panels, including “The Four Pillars of Investing Success,” “Master the Five Star Setup: Power Up Your Options Trading,” “Double-Digit Income for Life,” and “Cryptocurrencies in 2025: Key Developments You MIGHT Have Missed (and What They Mean)!”

• PLUS, network with 1,000+ investors, traders, speakers, sponsors, and exhibitors throughout the Oct. 16-18 event — and enjoy all the recreation and relaxation the Omni Orlando Resort at ChampionsGate has to offer!

• SPX: Why No One Seems to Care About Tariffs Anymore
  👉️ TICKER: SPX
  The US equity markets just had a strong week on the heels of better-than-expected earnings growth this quarter and some weaker-than-expected demand for Treasuries. Meanwhile, though recent tariff developments would have moved the markets back in April, they’re not even putting a dent in sentiment today, observes Michael Gayed, editor of The Lead-Lag Report.

• HD: A Housing Sector Bellwether that Offers Solid Value
  👉️ TICKER: HD
  The stock market is nearing a major decision point whose outcome will likely define the next several months of trading action. Since there are areas of the market which are starting to register positive money flows, I am putting some well-targeted money to work. That brings me to Home Depot Inc. (HD), notes Joe Duarte, editor of Joe’s Weekender Portfolio.

☀️📈 Get year-end picks and strategies at the 2025 MoneyShow/TradersEXPO Orlando (Oct. 16-18). Registration is now OPEN!