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All Eyes on Today’s CPI Report as Earnings and Global Risks Take Centre Stage

All Eyes on Today’s CPI Report as Earnings and Global Risks Take Centre Stage

All Eyes on Today’s CPI Report as Earnings and Global Risks Take Centre Stage

News Article | August 12, 2026

Investors have plenty to digest today, with the latest inflation data taking centre stage alongside another heavy round of corporate earnings and ongoing developments in the Middle East. The major U.S. equity benchmarks finished Tuesday’s session on the back foot. The Dow Jones, S&P 500 and Nasdaq all declined moderately, while the Russell 2000 and S&P 400 managed to finish higher, pointing to some continued interest in smaller and mid-sized companies.

Hormuz Remains a Key Market Risk

The situation surrounding the Strait of Hormuz remains fluid. Iran and Oman have suggested that discussions are approaching a possible agreement, although the Strait has yet to reopen. Any potential arrangement would also require U.S. approval. Washington has indicated that an agreement could emerge relatively soon, while Iranian officials have pushed back against the idea that a deal is imminent.

For financial markets, the uncertainty remains more important than the headlines themselves.

There were further incidents involving vessels in both the Strait and the Red Sea, while U.S. forces opened fire on a cargo vessel attempting to get through the naval blockade. Oil markets reacted accordingly, with crude prices gaining roughly 1.5% during the session.

Inflation Now Takes the Spotlight

Away from geopolitics, Tuesday's economic releases provided a mixed but generally constructive picture.

The NFIB Small Business Optimism Index climbed to 99.8, significantly better than the previous month's 97.4 and above the 97.3 consensus forecast.

Housing data was less encouraging. Existing home sales slipped to an annualized 4.06 million, compared with 4.13 million previously. The result was close to expectations of 4.05 million. Despite the monthly decline, sales remained 0.7

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