June's Consumer Price Index (CPI) data came in cooler than expected, sparking renewed investor confidence around interest rate cuts by the Federal Reserve. Ritholtz Wealth Management chief market strategist Callie Cox joins Morning Brief to discuss rate cut prospects and market outlooks (^DJI, ^IXIC, ^GSPC).

Cox emphasizes that today's data indicates inflation is declining at a gradual pace, which she notes is "exactly what the Fed wants to see." With two sets of Personal Consumption Expenditures (PCE) and CPI data due before the September meeting, Cox believes that soft readings could prompt Fed Chair Powell "to change the language in July," potentially paving the way for a September rate cut.

Regarding the impact of rate cuts on markets, Cox states: "Just a little bit of relief on the bull market could let it live a little bit more. We could see stocks outside of tech actually participate in this bull market, and the small caps and mid caps, which have lagged for so long, could potentially catch up."

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This post was written by Angel Smith