July 14, 2026

US inflation slowed in June and surprised to the downside

International

This morning, the U.S. Consumer Price Index (CPI) for June was released, coming in below analysts' expectations. On a monthly basis, the overall CPI fell 0.4%, compared to a 0.1% decline projected by analysts and a 0.5% increase in May. The core CPI, which excludes food and energy, remained virtually unchanged for the month, below both the expected 0.2% and the previous 0.2% increase. Year-over-year, the overall CPI slowed to 3.5%, below the 3.8% projected by analysts and the 4.2% recorded in May, while the year-over-year core CPI came in at 2.6%, also below the expected 2.8% and the previous 2.9% increase.

Major U.S. stock indexes closed yesterday with widespread losses. The S&P 500 fell 0.8%, the Nasdaq dropped 1.6%, and the Dow Jones declined 0.3%. Year to date, the three indexes have accumulated gains of 9.8%, 11.3%, and 9.2%, respectively.

Regarding US Treasury yields, the curve showed widespread increases yesterday. The 1-year Treasury note moved from 4.05% to 4.11%, while the 3-year note rose from 4.24% to 4.32%. Meanwhile, the 10-year Treasury note advanced from 4.56% to 4.62%.

As for commodities, gold fell 2.9% to $4,002.4 per ounce, while soybeans rose 0.5% to $441.6 per ton. Among energy commodities, WTI crude rose 9.2% to $77.97 per barrel, and Brent crude advanced 9.4% to $83.18 per barrel.

Finally, this morning the major US banks reported their second-quarter 2026 results. JPMorgan posted earnings per share (EPS) of $7.70, exceeding analysts' expectations of $5.55, with revenue of $57.35 billion compared to the projected $50.61 billion. Bank of America reported EPS of $1.21 versus the expected $1.12, with revenue of $31.6 billion versus the estimated $30.67 billion. Goldman Sachs reported EPS of $20.98, above the expected $14.38, with revenue of $20.34 billion versus the expected $16.12 billion. Wells Fargo reported earnings per share (EPS) of $2.00, compared to the expected $1.72, with revenue of $22.62 billion versus the projected $21.87 billion. Citigroup, meanwhile, posted EPS of $3.15, exceeding analysts' expectations of $2.73, with revenue of $24.77 billion versus the estimated $23.66 billion. Thus, all five banks surpassed analysts' expectations for both earnings and revenue.

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