US inflation rose more than expected; three reasons not to panic with buying-the-dip being rife

US inflation was hotter than expected for the 3rd month fueled by rises in oil, electricity, takeaway food and medical costs rising. It took the wind out of market's sails as higher inflation, means interest rates can stay higher for longer. And this is why the Fed is now expected to only cut interest rates 2 times this year instead of 3.

We also saw AI and chip names that have been sold off of late, such as Nvidia, rally over night with its shares $NVIDIA (NVDA.US)$ jumping 1.97% after falling 9.2% from March 26. This supports this theory of buying the dip. Also note that the market's fear gauge, the VIX index, has fallen from this months high and is at 15.80, indicating investors fear is easing.

- AI – is at a tip of the iceberg moment. In S&P500 over the last three months, we have seen the most earnings upgrades in chip makers – Super Micro Computer $Super Micro Computer (SMCI.US)$ and Nvidia $NVIDIA (NVDA.US)$ . And nuclear energy companies such are Constellation Energy $Constellation Energy (CEG.US)$ – this is telling

- Also, Expect earnings surprises in energy companies - as they have been heavily downgraded and seen the most earnings downgrades this year – watch Occidental $Occidental Petroleum (OXY.US)$ , Marathon $Marathon Oil(Delisted) (MRO.US)$, APA $APA Group (APA.AU)$. You might also be expecting earnings surprise in lithium companies, given EV demand is growing (despite EV sales falling at Tesla and GM).

- Demand cheap and cheerful and green energy is fuelling uranium prices higher. And we're also seeing uranium companies shares performing better than power companies.

- Plus there's a global push to use enuclear power as a clean energy source by 2050. But Australia is behind on that. At the same time, there is less uranium, with the world's biggest producer of uranium, Kazakhstan experiencing weather issues. It's why ratings agencies and investment banks are upgrading the uranium sector - expecting stocks likestocks, such as Constellation Energy $Constellation Energy (CEG.US)$, that produces 10% of clean energy in US to do well. And Constellation Energy is already one of this year's best performing stocks in the US.

- On the other hand it will probably be a year for gold stocks to shine. There are calls for Gold to get to 2500 but maybe even 3000 - what's behind that is that central banks are buying GOLD, including China's central bank. Plus there is a bit of FOMO. And the other tailwind for gold is the there's two rate cuts expected in 2024 (down from three)

These are some of the points I mentioned on Fox News this morning at 4.50am Sydney time
and on Ticker TV at 9.00am Sydney time.