Annual U.S. inflation was 3.2% in July, slightly lower than the 3.3% expected by economists but still well above the 2% expected by the Federal Reserve. Meanwhile, jobless claims rose to 248,000 in the week ended August 5, beating expectations for 230,000.

Although inflation is lower than expected, the increase in jobless claims is concerning. Nonetheless, we remain optimistic about the market. While cryptocurrency prices have declined over the past 24 hours, the digital asset is in the green on the 1-hour chart, with Bitcoin, Ethereum, Dogecoin, and Ripple all up less than 1%.

Meanwhile, Dow Jones Industrial Average futures rose nearly 200 points and Treasury yields moved lower. Nasdaq and S&P 500 futures rose 29.5 points and 148 points respectively.

Although inflation remains well above the Fed's desired 2% target, a slowdown in price increases is expected to reduce pressure on the Fed to continue raising interest rates. The U.S. central bank raised interest rates again by 25 basis points last month, which is expected to be the last hike in the short term.