On Wednesday, June 12, the U.S. stock market released the U.S. CPI (Consumer Price Index) data before the market opened. This data is regarded as an important indicator for measuring inflation levels and has a direct impact on the Federal Reserve's monetary policy decisions. The data showed that the U.S. CPI grew by 3.3% year-on-year in May, a slight decrease from the previous value and the expected value of 3.4%; the CPI grew by 0% month-on-month in May, 0.1% lower than expected, and also significantly slower than the previous value, the lowest level since July 2022.

The unexpected cooling of CPI triggered investors' expectations of a quick interest rate cut by the Fed. As a result, the three major U.S. stock indices opened higher and continued to rise, with market enthusiasm soaring.

Large-cap tech stocks collectively surged, breaking historical records again!

On June 13th, Apple opened with a 4% gain, reaching a peak of nearly 5.3% in early trading, refreshing its intraday historical high to $218.12, with a market value exceeding $3.3 trillion, surpassing Microsoft, and regaining the top spot in the U.S. stock market value during the trading session. However, as of Wednesday's close, Apple's market value was surpassed by Microsoft. Microsoft's stock rose by 1.94%, with a total market value of $3.278 trillion, surpassing Apple to regain the global number one; Nvidia rose by 3.55%, with a market value returning to the $3 trillion mark, Google Class C rose by 0.77%, and the stock prices of these four tech giants all closed at historical highs; Amazon fell by 0.18%, Meta Platforms rose by 0.27%, Tesla rose by 3.88%, and TSMC's total market value surpassed Berkshire Hathaway, becoming the seventh largest listed company in the U.S. S&P and Nasdaq hit new highs for three consecutive days.

AI stocks once again become the focus of the market.

Oracle rose by over 13% to a new high and the largest increase in three years, CrowdStrike rose by 0.7% to a new high for three consecutive days, SoundHound.ai and BigBear.ai erased gains of over 4% to close flat, C3.ai rose by nearly 1%, AMD rose by over 4% before closing up nearly 1%, Snowflake rose by 1.4%, breaking free from its lowest point in nearly 17 months.

The Fed aggressively cuts interest rate expectations

Following the release of CPI data, Fed Chairman Powell held a press conference. During the conference, Powell stated that inflation had eased significantly but remained at elevated levels. He emphasized that today's CPI data was a step in the right direction but should not be overinterpreted. He also pointed out that so far this year, the Fed has not had greater confidence in inflation to warrant a rate cut. Powell's remarks brought some cooling to the market, which had been heated by CPI data. The Dow oscillated between gains and losses, with the S&P and Nasdaq wiping out earlier short-term declines and hitting intraday highs towards the close, but the gains eventually narrowed.

source：uSMART SG

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