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.

The buying spree began at the opening and lasted for over 6 hours: with 45 minutes to go, the Nasdaq was still orbiting above 17,725 (+2.2%), the S&P500 above 5,447 (+1.3% and +0.85% in the end) before the FED dampened traders' expectations of monetary easing.
The Dow Jones, too 'industrial' and not 'GAFAM' enough, crumbled by -0.1% to 38,710.

Jerome Powell, at the press conference which began at around 8.30 p.m., indicated that interest rates will 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 cut as early as September had once again become the majority view

The 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 Monetary Policy Committee (FOMC), 4 anticipate zero cuts, 7 expect one, and 8 would see 2 (and zero to favor the 3 scenario that many investors still dream of).

But Wall Street's disappointment appears only relative, as the Nasdaq gained over 1.50% and managed a new intraday/close double (17,725/17,608).
The Nasdaq also opened a huge +150pt breakout gap above 17.343 in the wake of the usual 'stars'.

Apple has gained +10% in 2 sessions, with +7.2% on Tuesday and 2.8% this evening, while Nvidia has taken its revenge with a +3.5% gain and a new intraday record high of $126.9 (after splitting the nominal by 10 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 4.247%) before narrowing their lead slightly to -9pts to 4.318%.
WTI advanced 0.3% to $78.5 after peaking at nearly $79.

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