Tonight, the inflation "thermometer" most favored by the Fed suddenly blew up—

The US May PCE price index surged 4.1% year-on-year, and core PCE also hit 3.4%, both hitting new highs.
But don't panic too much—oil prices have already fallen 12% in May and crashed nearly 20% in June, so next month's inflation report will likely "cool down."

US stocks, however, rallied: the Dow, S&P 500, and Nasdaq all gapped up at the open, with AI chip stocks leading the surge—Micron soared 17%, Qualcomm jumped over 10%, and Intel and ARM both rose more than 6%.
The market is now betting that inflation has peaked and rate hikes should be over, right?

But new Fed Chair Warsh didn't commit to anything. Employment data remains stubbornly strong—nonfarm payrolls added 172k in May. Rate cuts? Don't even think about it this year.
As for rate hikes, institutions think it's too early to guess now; the more reliable script is no rate cuts for the whole year.

Gold is the biggest loser—it briefly broke below the $4,000 mark during trading, and major banks are still cutting their target prices, making bulls a bit panicked.
But domestic brokerages are bullish, saying that easing geopolitical tensions have pushed oil prices down, rate hike expectations are already largely priced in, and with global de-dollarization and high debt levels, gold prices will trend higher in the medium to long term.

In a nutshell: inflation is still bouncing, but oil is softening; US stocks are hyped, gold is wilting; rate hikes are up in the air, and rate cuts are nowhere in sight.
This big show is just starting in June.🔥$SPCX ‌$M $BTC