Soft US CPI = Hot Tech Stocks. What's next? Plus Nasdaq 100 rebalance

Just look at the QQQ fly.

The US futures are suggesting the US market will have a positive day of trade on Thursday, after US stocks surged on Wednesday, with the S&P500 closing at its highest level in a year after a cooler-than-expected June inflation read (consumer price index report), showed the US central bank, the Federal Reserve, could have the ability to go lightly with rate hikes, and even, perhaps maybe take their foot off the gas, with interest rates hikes. And ultimately, help the US economy avoid a recession.

For investors in tech, high growth and high PE stocks, that will be music to thier ears. Why? Well remember the market is forward looking. So a companies future earnings power would typically increase if interest rates drop.

2 - Plus, we will need to see the Fed keep rates on hold. And then the good times may likely continue to tech, high growth and high price-to-earnings stocks, theoretically over the medium term.

3 - But beware, if you are trading or investing for a shorter-term horizon, remember your portfolio may be susceptible to market surprises.

- Well, expect some bumps (volatility) It will occur before July 24. It means the biggest stocks in the Nasdaq 100, such as the biggest US stocks, will likely see more volatility before and after that data, as not only is the index redistributed to weights, to address over concentration. But investment managers and some ETF providers will then adjust their portfolios or ETFs accordingly.