"U.S. Stocks Surge on Inflation Report, but Soft Landings for Fed Remain Unlikely"

U.S. stocks rose as investors embraced the idea of a soft landing for the economy, despite inflation remaining above the Federal Reserve's target. The consumer-price index showed a 0.2% rise in June, with a year-over-year rate of 3%. Core inflation, excluding energy and food prices, increased 0.2% for a year-over-year rate of 4.8%. The Fed is expected to raise its benchmark interest rate by a quarter percentage point at its July meeting, with a high probability of pausing in September. However, some analysts warn that the Fed may overtighten, risking a harder landing for the economy.