The Nasdaq fell nearly 2%, with the largest selling volume of the 'Seven Sisters' in a year and a half, while small caps and Chinese concept stocks surged, and US bonds rose sharply.

Comprehensive cooling of US inflation, September rate cut betting pushing US stocks rotation, S&P and Nasdaq ended seven-day consecutive gains and moved away from their highs, Tesla plummeted 8.4%, the worst in nearly half a year and stopped 11-day consecutive gains, Nvidia fell 5.6%, and the chip index fell 3.5%. The Russell 2000 small-cap stocks rose 3.6%, the best since November last year and the highest in two and a half years, and the worst-performing real estate sector this year had the largest increase in the year. US bond yields fell sharply across the board, with the US dollar falling the deepest in two months. The yen rose by 2.6% at one point, the biggest gain since the end of 2022, and anonymous officials confirmed that the government intervened to rescue the currency.

wallstreetcn1minutes ago

S&P 500 To Plunge More Than 20% Near Term? Top Economist Breaks Down Broader Market Vs. Small-Cap Divergence After June CPI Report

The stock market had a "buy-the-rumor, sell-the-news" move on Thursday after a tamer inflation data sent the major averages sharply lower, with the sell-off spearheaded by mega-caps and big techs.

Benzinga02:19 ET

The key indicators of inflation in the United States have slowed down, with the market already pricing in more than two interest rate cuts this year!

The biggest 'surprise' in the June CPI report was that stubborn housing inflation cooled rapidly, falling from 0.40% on a month-on-month basis to 0.17%, boosting market expectations of interest rate cuts. It is certain that interest rate cuts will be implemented in September, and possibly even in July.

wallstreetcn20:57 ET

Fed's Goolsbee: CPI Data Indicate Inflation on 2% Path

Federal Reserve Bank of Chicago President Austan Goolsbee on Friday marked the latest inflation report as “excellent.” Goolsbee further stated that the reports prove that the central bank is on track to meet its 2% target.

FXStreet20:43 ET

How do high officials of the Federal Reserve view the significant cooling of inflation in the USA?

Two senior officials from the Federal Reserve spoke on Thursday, stating that inflation is making progress. The president of the St. Louis Reserve stated that the current policy interest rate is appropriate at this stage. The president of the San Francisco Reserve stated that given recent employment and inflation data, the Federal Reserve may need to make interest rate adjustments, but did not provide a specific schedule for rate cuts.

wallstreetcn19:17 ET

"Xinmei Federal Reserve News Agency" evaluates CPI in June: Mild inflation opens the door for a rate cut in September.

According to Timiraos' article, after the release of CPI, investors have increased the possibility of rate cuts in September, November, and December this year. A major question at this month's Fed meeting is how much basis Fed officials have laid for a rate cut in September. This year's FOMC voter, President of the San Francisco Fed, Daly, expects that it may be reasonable to cut interest rates soon after the announcement of the CPI, but also said that more information needs to be collected.

wallstreetcn19:13 ET