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The bulls continue to rule the action in the S&P 500 index futures, now establishing a solid three-day win streak.

Before May’s CPI data was announced at 8:30am EDT, the bulls were already in control, pushing the index futures up and slowly making new all-time highs. Once the consumer price index (CPI) came in below expectations, algos quickly saw a dip and rip straight up into the 5400 handle and beyond.

 

May Report Actual Expected Previous
PCI (MoM) 0.0% 0.1% 0.3%
PCI (YoY) 3.3% 3.4% 3.4%
Core PCI (MoM) 0.2% 0.3% 0.3%
Core PCI (YoY) 3.4% 3.5% 3.6%

 

The regular session commenced nearly 50 handles higher in the 5430 area, and after a brief pause, the bulls continued the rally onto new all-time highs. The rally finally peaked at 5453.50 and profit-takers started to introduce some selling pressure. Not many market participants were surprised by the FOMC’s decision to hold rates where they are for now (5.25-5.5%), but the median forecasts for 2024 were adjusted to include only one 0.25% rate cut, as well as a 2025 median forecast of 1.00% worth of rate cuts. Fed Chair Jerome Powell took the stage at 2:30pm EDT, and even though he sounded somewhat hawkish, the bulls fought off attempts to erase the day’s gains.

Undeterred, the bulls tried for a late-day rally during the final hour. The good news is they were able to break through the morning’s high. The bad news is they only breached it by one handle, pushing the all-time high to 5454.50. From that point, the edge started to go to the bears, who took the index futures back near where the day started. They also thwarted a last-minute rally by the bulls in the final 10 minutes. The session concluded above mid-range on the day at a new all-time closing high of 5427.50, advancing by 43.50 handles.

Many top components benefitted from the fairly broad tech rally, and Tesla Inc (NASDAQ: TSLA) emerged as the biggest gainer. The EV maker was able to advance by $6.63 or 3.88% to close at $177.29 for the day, one day ahead of its annual meeting where shareholders will find out if Musk ‘s $56B pay package will be approved.

That performance beat the cash index’s advance of 0.82% over fourfold.

JPMorgan Chase & Co (NYSE: JPM) claimed the bottom spot among top components for the second day in a row. For the day, the banking behemoth declined by $2.81 or 1.44% to close at $191.53.