U.S. CPI cools down, S&P Nasdaq hits new high at the opening, tech stocks rise together, Apple regains the top spot in U.S. stock market value

On Wednesday, June 12, the three major U.S. indices opened higher and continued to rise, with the S&P and Nasdaq breaking new intraday highs.

In May, the U.S. CPI cooled down across the board, leading to a morning rally in all three major U.S. stock indices. Boosted by tech stocks, the Nasdaq performed the best, rising by about 1.9%. The Dow, which is dominated by blue-chip stocks, rose by nearly 372 points or 0.96%, while the S&P 500 index rose by about 1.3%.

Leading tech stocks, except for Meta, all rose, with Apple, Microsoft, and Nvidia hitting new intraday highs. Apple and Nvidia performed the best, with Apple rising by 5% to a new intraday high of $218.12, aided by AI technology reclaiming the top spot in U.S. market value. Additionally, Tesla, which had performed poorly in the past two days, saw a significant rebound today, rising by nearly 4% in the morning. Microsoft and Google Class A shares rose by about 1.36% and 2.1% respectively, while Netflix went from a rise of about 1.1% to a drop of about 0.18%, before slightly rebounding. "Metaverse" company Meta initially fell slightly before dropping by nearly 0.6% intraday, with several short-term declines during the day.

Chip stocks accelerated their upward trend, with several individual stocks hitting new highs. The Philadelphia Semiconductor Index rose by 3.3%, while the semiconductor industry ETF SOXX rose by 3.2%, both hitting new intraday highs. Nvidia rose by 4.9% at one point, reaching a new intraday high, with a market value stabilizing at $3 trillion and ranking third. The double long ETF for Nvidia rose by nearly 10%, hitting a new high during the day. Stocks like AMD, Broadcom, TSMC, Applied Materials, and Micron Technology also hit new highs intraday, with TSMC's total market value reaching $912 billion.

Most AI concept stocks rose. Oracle rose by nearly 12.9% at its peak.

Chinese concept stocks did not keep up with the frenzy in U.S. stocks, with mixed performance in the morning. The Nasdaq Golden Dragon China Index (HXC) fell the most by 0.41%, but later slightly rebounded. ETFs KWEB and CQQQ maintained their upward momentum in the morning, rising by 0.72% and 1% respectively. Chinese new energy vehicle stocks saw a significant narrowing of losses in the morning, with Nio and Li Auto turning positive, while XPeng dropped by over 2%.

Retail investors remain enthusiastic about certain stocks. GameStop rose by over 6% at one point in the morning, while AMC Theatres saw a high of 3.3%.

The following content was published before 21:50 Beijing time.

On Wednesday, June 12, the U.S. CPI cooled down across the board in May, leading to a widening of gains in the early trading session for the three major U.S. stock indices. The Nasdaq rose by 1.52%, the S&P 500 index rose by 1.11%, and the Dow rose by 0.84%. The S&P Homebuilders Index rose by 2.7%, marking the largest intraday gain since May 15

The core CPI in the United States fell to a three-year low in May, and the futures market has fully digested the expectation of two interest rate cuts this year. Most of the US technology stocks rose, with Apple's stock price up more than 2%, surpassing Microsoft in market value to reach $3.24 trillion, reclaiming the top spot in the US stock market.

TSMC rose more than 5% intraday, with the stock price reaching $175 per share at one point, hitting a new historical high with a total market value exceeding $900 billion.

Nvidia rose more than 2.5%, Oracle rose more than 11%, despite the company's financial report being lackluster, it reached cooperation agreements with OpenAI and Google.

Major industry ETFs rose across the board, with regional bank ETFs up 3%, semiconductor ETFs and banking ETFs up nearly 3%.

Popular Chinese concept stocks showed mixed movements before the market opened, with Zhihu down more than 4%, Nio down 0.56%, XPeng up 0.87%, Li Auto down 1.47%, Alibaba up 0.13%, and NetEase up 0.29%.

On the news front, the core inflation rate in the United States for May declined for the second consecutive month, which came as a surprise to Federal Reserve officials who are looking for evidence to support a rate cut. The Bureau of Labor Statistics announced that the core CPI, excluding food and energy costs, increased by 0.2% month-on-month in May, with a year-on-year increase of 3.4%, reaching the lowest level in over three years. These data, along with the slowdown in core CPI growth in April, may indicate a return to a cooling trend in inflation. However, Federal Reserve policymakers have repeatedly emphasized that they need to see several months of easing in price pressures before considering lowering interest rates. The latest non-farm payroll report has reignited the debate about the extent of policy constraints Economists believe that core CPI can better reflect the potential inflation level than overall CPI. Due to the drop in gasoline prices, the overall CPI remained flat on a month-on-month basis, showing the weakest performance in nearly two years, with a year-on-year increase of 3.3%. In a few hours, the Federal Reserve will conclude its two-day monetary policy meeting, with the general expectation that the central bank will maintain interest rates at a 20-year high for the seventh consecutive time. However, they may adjust the dot plot forecast.

European stocks rise collectively

The French CAC40 index rose by 0.78%, the German DAX30 index rose by 1.17%, the UK FTSE 100 index rose by 0.97%, and the Euro Stoxx 50 index rose by 1.12%.

Precious metals give back more than half of their gains

After a surge, precious metals gold and silver have retraced more than half of their gains following the release of the US CPI report. Spot gold is now trading at $2328 per ounce, with gains narrowing to within 0.5%, while spot silver is now trading at $29.83 per ounce, with gains narrowing to 1.8%.

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