US sharemarkets fell on Thursday, despite better than expected consumer inflation figures for the month of June and a growing conviction the US Fed will cut interest rates in September. The Dow Jones index rose 32 points or 0.1% and the S&P 500 index fell 49 points or 0.9%. The Nasdaq index fell 364 points or 2.0%, snubbing a double digit fall in bond yields, as investors turned their back on the megacap technology names that have pushed the Nasdaq to a 33% gain in the last 12 months. Nvidia fell 5%, leading losses for chip makers; Microsoft and Apple fell more than 2%. The first results in the quarterly earnings season landed poorly with investors. Shares in PepsiCo +0.25%, initially fell more than 3%, despite earnings per share of $2.28 for the quarter, beating estimates of $2.15. Investors instead focussed on weaker revenue numbers as evidence that recent price hikes had dented consumer demand. Travel related stocks were dragged lower by a near double digit decline for Delta Airlines shares in opening trade in reaction to missed expectations for the carriers earnings, investors concluding that discounting is impacting the bottom line for airlines. Delta shares ended the session with a loss of 5%. Pfizer shares rose almost 1% after the drugmaker reported progress on a daily weight loss pill.

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