The June consumer price index data came in slightly lower than expected, increasing the likelihood of the Federal Reserve cutting interest rates. The headline CPI dropped 0.1% from May, the first decline since May 2020, while the core rate rose just 0.1%, the smallest gain since April 2021. This news prompted investors to rotate out of tech stocks and into rate-sensitive investments. The market expects as many as three rate cuts by the end of the year, with the first likely in September. The Fed's cautious approach reflects concerns about deflation and impacts on companies like PepsiCo, which resisted lowering prices. Despite mixed results in various sectors, real estate led gains on the session. The data signals a shift in market dynamics as investors anticipate earnings season and monitor the impact of falling interest rates on stock prices.