Market Musings 6/12/2024

Quick thoughts on the markets and major portfolio news. Not on Ursa yet? Download Ursa from the App Store!

Markets surge on slowing inflation data offsetting a slightly hawkish Fed.

Markets blasted off today on lower inflation data.

The May CPI showed no M/M growth-below expectations for 0.1%.

The core reading (excluding food and energy) grew just +0.2%-below expectations for 0.3%.

That fueled the market to pop with the S&P 500 up over 1% midday.

Then, came the Fed meeting in power hour…

While a little more hawkish than expected, it didn’t derail the morning’s euphoria.

As expected, no #RateCuts and more data needed on inflation progress.

The new dot plot forecast signaled expectations for 1 cut (down from 3 last quarter).

However, investors latched on to still no officials forecasting a rate hike and that more readings like today’s could accelerate #RateCuts.

Markets pulled back a little from intraday highs, but still held on to solid gains.

As expected, today was going to be a big catalyst and it didn’t disappoint.

Two down, one more to go…

Tomorrow, May PPI data releases which could reinforce May’s CPI progress or discount the reading as an outlier…

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The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.

Original Photo by John Guccione.