U.S. markets took a cautious pause Wednesday as investors juggled mixed signals from inflation reports and China-U.S. trade talks. The S&P 500 dipped 0.27%, while the Nasdaq fell 0.5% – a classic “wait-and-see” moment for Wall Street. 🌆
Inflation Report: A Silver Lining?
May’s Consumer Price Index (CPI) rose just 0.1% monthly, softer than expected. Core inflation held steady at 2.8% annually, fueling bets the Federal Reserve might cut rates by September. 📉 CME FedWatch data shows a 57% chance of a cut – up from 53% a day earlier. “This data eases stagflation fears,” said Bank of America economist Stephen Juneau.
Tech Giants Take a Hit
Big tech stocks slid: Apple and Amazon dropped ~2%, while Nvidia and Meta fell 1%. Intel nosedived 6.5% after Tuesday’s rally. But Broadcom (+3.4%) and Microsoft (+0.3%) bucked the trend. 💻⚡
Trade Talks & Energy Surge
Energy stocks jumped 1.5% as oil prices climbed, while China-U.S. trade discussions in London ended quietly. Economist Claudia Sahm warned: “Don’t overhype one inflation report – trade policy impacts are still unfolding.” 🌏🤝
