US Inflation Eases More Than Expected In May, Boosts 2024 Rate Cut Prospects Ahead Of Wednesday's Fed Meeting
Portfolio Pulse from Piero Cingari
US inflation eased more than expected in May, boosting prospects for a 2024 rate cut ahead of the Fed meeting. The annual CPI inflation rate fell to 3.3%, below the expected 3.4%. This has led to a rally in futures on major U.S. equity indices and a drop in Treasury yields.
June 12, 2024 | 12:35 pm
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POSITIVE IMPACT
The Invesco QQQ Trust (QQQ) rose by 0.69% as Nasdaq 100 futures rallied 1% in response to the lower-than-expected inflation data.
The tech-heavy Nasdaq 100 futures rallied due to the lower inflation rate, which positively impacts QQQ.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) saw a 0.24% increase as futures on the S&P 500 rallied by 0.8% following the cooler-than-expected inflation report.
The lower-than-expected inflation rate has increased market optimism, leading to a rally in S&P 500 futures, which positively impacts SPY.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80