June 13, 2024

Markets:

S&P 500 futures rose Thursday after investors got more economic data indicating inflation pressures are easing.

Investors got another look at inflation on Thursday morning, with May’s producer price index coming in below estimates. The PPI fell 0.2% from the prior month, while economists expected a 0.1% increase, according to Dow Jones. Wall Street is coming off a strong session for the S&P 500 and Nasdaq Composite, with each benchmark hitting all-time highs and closing at records. The broader market index notched a 0.85% advance, while the tech-heavy Nasdaq rallied 1.53%. The 30-stock Dow was the outlier, closing down slightly by 0.09%.

Investors were optimistic after the central bank acknowledged that “modest further progress” had been made toward its 2% inflation target, even as it kept rates unchanged.

At the conclusion of its policy meeting Wednesday, the Fed indicated just one rate cut is coming in 2024, down from the three it previously forecast in March.

May’s cooler consumer price index print added to hopes that inflation was indeed easing. Treasury yields plunged following the report, with the 10-year note dropping to its lowest level since April 1.

Tesla shares were up more than 5% in the premarket after CEO Elon Musk said in a post on X that shareholders were on track to approve his massive $56 billion pay package. He also said another resolution to transfer the company’s state of incorporation to Texas from Delaware was also headed for approval.

Portfolio:

Another strong session for us led by profits booked in PLTR and AI.  We enter todays session holding set-ups in AFRM, GBTC, SG, and MARA. The queue is a force right now with activity. Price action and options are exploding with movement we have not seen in months. The breakout continues to build and this "hated rally" in tech is just beginning. I cannot be any more emphatic that the next several months – especially with the election cycle set to begin – should provide some of the greatest trade set-ups for us to take advantage of. This AI cycle is so new and new leaders will begin to emerge as well.  Welcome it!