Wall Street Awaits July CPI, PPI Inflation Data Amid Fed Rate Speculation

Wall Street is navigating a volatile environment shaped by anticipation of key July 2025 inflation data, Federal Reserve interest rate decisions, and ongoing U.S.-China trade tensions, including tariff policies. Investors are closely watching the Consumer Price Index (CPI) and Producer Price Index (PPI) releases, expected to significantly influence the Fed's approach to interest rates, with market speculation around potential rate cuts based on inflation trends. Semiconductor companies Nvidia and AMD faced stock volatility amid new revenue-sharing agreements with the U.S. government related to China exports, coinciding with President Trump's extension of a tariff pause, which underscores evolving trade relations. Concerns have also emerged about the reliability of government economic data, especially following President Trump's firing of the Bureau of Labor Statistics commissioner, raising fears over politicization and data accuracy during a critical period for economic decision-making. These intertwined economic factors are driving cautious investor sentiment, impacting trading volumes, and shaping expectations for upcoming policy moves and market performance.