Wall Street ended Tuesday’s session (July 14, 2026) in positive territory, buoyed by a notable slowdown in U.S. inflation for June compared to May. The relief came amid investor concerns over renewed tensions in the Iran conflict — concerns that had triggered a sharp drop the previous day. With all three major indices posting gains, markets staged an immediate recovery.
Major Indices Close Higher
The Dow Jones Industrial Average rose 0.02% to 52,508 points. The broader S&P 500 gained 0.38%, closing at 7,543, while the tech-heavy Nasdaq surged 0.9% to 26,107.
Bond Yields Retreat
Treasury yields declined across the curve: the 10-year U.S. Treasury yield fell more than 2.5 basis points to 4.58%, and the 2-year yield dropped over 5 basis points to 4.20%.
Inflation Eases Sharply
U.S. consumer price inflation for June stood at 3.5%, down from 4.2% in May — a larger decline than analysts’ forecast of around 3.8%. On a month-over-month basis, the Consumer Price Index (CPI) fell 0.4%, marking its steepest monthly drop in over six years — since April 2020.
This easing was driven largely by a sharp decline in energy prices. Earlier in June, reports suggested the U.S. and Iran had tentatively agreed on a 60-day plan aimed at ending hostilities — though recent U.S. military strikes in Iran have cast doubt on that path forward.
Fed Leadership Signals Confidence
Kevin Warsh, the newly appointed Federal Reserve chair, emphasized that the central bank will deploy the appropriate policy mix to ensure inflation’s recent five-year surge becomes ‘a thing of the past.’