All three major US indices closed in the green overnight, following the US inflation report that indicated a slowdown in price pressures in May, raising the probability of a ‘skip’ at the next FOMC meeting tomorrow to 93.1% from 79.1% the day before. The Dow added 146 points (+0.43%). Dow, at best up 244 points. The S&P 500 and NASDAQ gained 0.69% and 0.83%, respectively, hitting their highest levels since April 2022. The Russell 2000 Index rose 1.23%, jumping to a three-month high. VIX down 2.7%. US treasury yields rose, and gold prices fell. USD Index down 0.30%, while base metals and oil found support on the weaker dollar. Australian market set to rally at open, with SPI futures up 44 points (+0.62%).

European markets are broadly up, STOXX 50 +0.7%, FTSE +0.3%, CAC +0.6%, and DAX +0.8%. The ECB is holding its policy meeting on Thursday, where it is expected to raise rates by another 25bps. In currencies, the Euro hits a three-week high reaching $1.08, and the British pound hits a one-month high, touching $1.26, while the Aussie dollar remains flat, down 0.03% to 67.64c.

HEADLINES

• Trump pleads not guilty in federal documents case.
• US consumer price increases slow; underlying inflation sticky.
• US small business sentiment edges up in May, NFIB says.
• In challenge to Nvidia, AMD will ramp up AI chip production this year.
• US plans to purchase 12m barrels of oil for reserve this year.
• Toyota unveils sweeping plans for new battery tech, EV innovation.
• Tesla taps brakes on job ads after Musk clamps down on hiring.
• Wells Fargo CFO expects upside in net interest income.

Tune in to Henry Jennings’ Pre-Market Podcast to get in the know for the day ahead. 

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