Day Traders Diary

6/12/24

The major averages closed mixed with the Dow down 35 points while the S&P 500 rose 45 points or 0.85% and the Nasdaq rose 264 points or 1.53% thanks to tame inflation data from May which caused bond yields to plummet ahead of the Federal Reserve's meeting this afternoon,

The 10-year treasury yield fell 7 basis points to 4.33%. The 2-year treasury yield dropped 7% basis points to 4.76%. The move in yields comes as the May consumer price index shows that CPI was flat over the month of May and up 3.3% year after year, much better than expected.  

Fed funds futures now indicate traders are putting the odds of an interest rate cut in September at about 70% following the data, up from even odds a day before.

Tech stocks jumped after the better than expected inflation data. Apple rose 3% today, up 10% in the last two days following their AI presentation at their worldwide conference. Nvidia is up 3% continuing its rally. The chip sector in general is higher. Microsoft was up a percent, but was surpassed in market cap by Apple. The diamond of the day goes to Oracle up 13% following their earnings report and news of cloud deals with Google Cloud and Open AI.

Commodities in general are higher today. Gold, Silver and oil are up a percent. Silver is up 3% while Bitcoin is jumping 3%.

A number of sectors seem to be sitting out the rally today including the consumer service, consumer stables, the drug sector and energy stocks.