Tesla, Palantir Fall as CPI Sends September Fed Hike Odds to 33%

Tesla fell about 2% and Palantir dropped around 1.3% even after a benign July CPI report boosted rate-sensitive growth stocks and lifted broader equities. Headline CPI rose just 0.1% month over month, with annual inflation at 3.4% versus 3.5% in June, while core CPI increased 0.2% and cooled to 2.5%, its lowest since March 2021. The data reduced expectations for another September Fed hike, with CME FedWatch odds falling to roughly 38% from 48.4% the prior day and Polymarket pricing a 33% chance of a quarter-point hike. The article frames Tesla’s decline as a failure to join the macro relief rally, while Palantir’s weakness is tied more to a rotation out of software and into AI hardware/infrastructure names. Overall, the piece suggests inflation was not hot enough to hurt markets, but not strong enough to provide a clean catalyst for TSLA and other software stocks.