The euphoria was total as soon as the US markets opened, and lasted until 9:15pm, with investors exuberantly enthusiastic about a slightly weaker-than-expected CPI (unchanged at 3.3% vs. 3.4% expected, after +0.3% in April).

Core CPI (which excludes volatile items such as food and energy) rose by 0.2% last month, in line with expectations.

Buying programs went into overdrive at the opening and lasted more than 6 hours: with 45 minutes to go, the Nasdaq was still orbiting above 17.725 (+2.2%), the S&P500 at over 5,447 (+1.3% and +0.85% in the end) before the FED dampened traders' hopes of monetary easing.
The Dow Jones, too 'industrial' and not 'GAFAM' enough, fell by -0.1% to 38,710.

Jerome Powell, at the press conference which began at around 8:30 p.m., indicated that interest rates would remain high for as long as necessary if "the economy remains solid and inflation persists".

The decline in inflation would have to be confirmed for several months before the FED could embark on a rate cut.

Until 9.15pm, expectations of a 1st rate cut as early as September had once again returned to the majority.

Disillusionment is quite clear: the survey of Federal Reserve officials shows that - on average - they expect to cut rates only once in 2024.

Of the 19 members of the Federal Open Market Committee (FOMC), 4 anticipate zero rate cuts, 7 expect just one, and 8 would like to see 2 (and zero in favor of the 3 scenario still dreamed of by many investors).

But Wall Street's disappointment is only relative, as the Nasdaq gains more than 1.50% and achieves a new intraday/close double (17.725/17.608).

The Nasdaq also opened a huge +150-pt 'breakout gap' above 17.343 in the wake of its usual 'stars'.

Apple gained +10% in 2 sessions, with +7.2% on Tuesday and 2.8% last night, while Nvidia took its revenge with a +3.5% gain and a new intraday record at $126.9 (after a 10x split of its nominal value on Monday).... not forgetting Autodesk with +5.5%, Intuit +4.5% and Micron +4.2%, followed by Broadcom +2.5%.

A very fine session on the bond market: T-Bonds confirmed Tuesday's upturn before the CPI. Yields on 10-year Treasuries plunged -15pts (to around 4.247%) before narrowing their lead a little with -9pts to 4.318%.

WTI advanced 0.3% to $78.5 after peaking at nearly $79.

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