Markets Soar on Cooling Inflation and Airfare Surge — Airlines Lead an Explosive Rally
A sharp drop in inflation and soaring airline fares ignite Wall Street’s bullish momentum, pushing indexes toward record highs.
The U.S. markets gained bold momentum today as stocks surged toward all-time highs, riding a wave of encouraging inflation figures and a sharp rise in airfare prices. The headline CPI for July came in at 2.7% year-over-year, slightly below the expected 2.8%, fueling optimism around a potential Federal Reserve rate cut in September.
Amid that broader macro tailwind, airlines stole the spotlight — United Airlines (UAL) climbed nearly 10%, Delta Air Lines (DAL) rose 9.1%, while American Airlines (AAL) and Southwest (LUV) both recorded double-digit and strong mid-single-digit gains respectively. The sector’s rebound is being linked to a 4% increase in airfares in July, signaling either resurgent demand or capacity cuts, and injecting renewed energy into a travel industry that’s had a tough year.
In parallel, key equity names delivered compelling moves: Intel (INTC) rose roughly 3% following a positive encounter between its CEO and President Trump, easing lingering tensions; Sea Limited (SE) surged a staggering 20% on the back of strong quarterly earnings. Circle Internet (CRCL) ticked up 4% despite a loss, thanks to better-than-expected revenue.
Not all companies rode the wave: Celanese (CE) dropped about 13%, citing softening demand and a weaker profit outlook. Eastman Kodak (KODK) fell around 25% after swinging into a quarterly loss and expressing debt-related concerns. Meanwhile, CoreWeave (CWV), an AI-data center leasing firm, remained in the spotlight ahead of its earnings release after the bell.
In a broader market context, Wall Street advanced with indexes nearing new records: the S&P 500 gained 1%, the Dow Jones jumped 467 points, and the Nasdaq rose 1.2%, all fueled by the better-than-expected inflation print and hopes for Fed easing.
This powerful rally was compounded by a significant rebound in travel-related stocks and chip/tech firms, while laggards like Celanese and Kodak reminded investors that the strength remains selective.
In short, today’s market narrative centers on falling inflation, strength in airlines, big movers like SEA and INTC, and cautionary tales like CE and KODK — all within a broader bullish backdrop. For investors and readers, keeping an eye on CPI trends, Fed expectations, and standout earnings stories like Sea or CoreWeave will be key to navigating this market pulse.
