S&P 500 Rally Tests Whether Softer Inflation Can Offset Oil Risks

U.S. stocks are set to open higher after June inflation came in cooler than expected at 3.5% year-on-year, easing Fed tightening concerns. However, rising oil prices due to U.S.-Iran tensions and reduced Strait of Hormuz shipping activity could complicate the inflation outlook. IBM tumbled 19% after missing revenue forecasts due to a shift in enterprise spending toward hardware, while JPMorgan beat earnings expectations with strong trading and investment banking revenues.