THE GIST (“THE WHAT”)
As investors keenly await the key CPI data and Fed policy decision, the S&P 500 hit a 14-month high as it now enters into a new technical bull market. Gapping higher at the open, the index held on to modest gains throughout the session, closing near day’s highs at 4338.92, up 40.05 points (0.93%).
Note: Our daily “S&P 500 Trading plan” will be posted around 9:30/10:00am EDT, every trading day.
Daily Trading Plans for Mon 06/12: Inflation, Yields, and FOMC in Focus This Week
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THE DETAILS (The “How & Why”):
Chip stocks and FANG stocks led the broader index higher amid expectations of a softer landing, cooling inflation and rising odds of the Fed pausing its aggressive policy-tightening cycle following 10 consecutive rate hikes since March 2022. Amazon.com jumped 2.54%. Apple Inc and Microsoft Corp both rose 1.5% each. Intel Inc, Broadcom Inc, Microchip technology and Micron Technology rallied 5.52%, 6.31% and 3.56%, respectively. Stock upgrade by Wolfe Research also boosted Oracle Corp by more than 5%.
Cruise stocks traded higher led by a 12.45% rally in Carnival Corp after JPMorgan Chase upgraded the cruise operator citing strengthening demand. Norwegian Cruise Line Holding also jumped 7%.
Capping the day’s gains, however, energy stocks fell alongside a sharp 4% decline in oil prices that registered a new 6-week low. Phillips 66, Halliburton, Marathon Oil and Hess Corp. fell 2%, 1.89%, 1.27%, respectively. Regional bank stocks also traded lower following a gloomy outlook by KeyCorp that pushed its stock down by 4.31%.