- Market Rally: Stocks surged on Tuesday following positive inflation data. The Nasdaq gained 2.43%, the S&P 500 increased by 1.68%, and the Dow rose by 408 points. All major indices are now above their levels from the August 2nd close, recovering from the early August sell-off.
- Starbucks CEO Change: Starbucks' stock jumped nearly 25% after announcing that Laxman Narasimhan is stepping down as CEO, effective immediately. He will be replaced by Chipotle's CEO, Brian Niccol, starting September 9. Chipotle's stock dropped over 10% on the news.
- Producer Price Index: The PPI for July showed lower-than-expected inflation, with the core PPI remaining flat. Investors now await the consumer price index (CPI) report, which could impact Federal Reserve decisions.
- Google AI and Pixel Phones: Google introduced new AI features integrated with its Gemini assistant, available on Android devices, along with the latest Pixel phones and watches. These AI advancements aim to outpace Apple’s upcoming AI offerings.
- Mortgage Refinancing Surge: Mortgage rates have decreased significantly, leading to a 35% surge in refinance applications last week. The drop in rates has been gradual, but they are now 62 basis points lower than a year ago, spurring refinancing activity.