[New York Stocks] CPI Hits 3-Year High... S&P 500, Nasdaq Rise
Semiconductor Sell-Off Ahead of SpaceX IPO
Crude Oil Prices on the Rise
As the U.S. Consumer Price Index (CPI) for May reached its highest level in three years and a sell-off in semiconductor stocks continued ahead of the SpaceX IPO, the three major New York stock indexes showed mixed movements on June 10 (local time).
As of 10:25 a.m. on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average was down 198.76 points (0.39%) from the previous trading day, standing at 50,637.35. The S&P 500 Index, which is focused on large-cap stocks, was up 1.73 points (0.02%) at 7,388.38, while the tech-heavy Nasdaq Index had risen 10.258 points (0.03%) to 25,689.374.
On this day, the U.S. Department of Labor announced that the May CPI rose by 4.2% year-on-year. This figure is 0.4 percentage points higher than the April increase of 3.8%. It is the first time since May 2023 (4.0%) that the U.S. CPI growth rate has exceeded 4%. On a month-over-month basis, the CPI increased by 0.5%. This marks the second consecutive month of high growth, following a 0.6% rise in April.
The core CPI came in at 0.2%, lower than the expected 0.3%. Year-on-year, it registered 2.9%, matching expectations but still above the Federal Reserve's inflation target of 2%.
Rising tensions in the Middle East are also acting as an upper limit on the market. U.S. President Donald Trump stated that negotiations with Iran are "taking too long," adding, "They dragged out negotiations that would have been favorable to them for too long, so now they'll have to pay the price."
As a result, on the New York Mercantile Exchange, West Texas Intermediate (WTI) crude oil was up 2.09% from the previous session at $90.02. Brent crude oil on the ICE Futures Exchange was trading at $92.86, up 1.57% from the previous session.
Volatility has also increased ahead of the SpaceX IPO scheduled for June 12, further amplifying downward pressure. CNBC reported that small retail investors are selling semiconductor stocks to create room in their portfolios for what is expected to be the largest IPO ever.
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Marta Norton, Chief Investment Strategist at Empower Investments, explained, "In recent weeks, the market's gains have been driven by a focus on memory and semiconductor sectors. This area has been the real engine behind everything, and now, having risen very strongly, appears to have reached a peak."
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