📊 Market Event Update

June 14, 2024

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Ready for a whirlwind tour of finance updates? Buckle up, because between the Fed's rate antics, U.S. inflation twists, and Oracle's cloud dreams, it's been a wild week!

Market Event Recap:

  • 🏛️ Fed decision. Rates are expected to stay on hold on Wednesday. But it’s all eyes on the ‘dot plot’ – given some stubborn data readings, it could show two cuts planned this year instead of three.

  • 🇺🇸 US inflation. The final data point for the Fed’s consideration drops on Tuesday. May CPI is expected to rise by 0.2% MoM and 3.4% YoY.

  • 🔮 Oracle earnings. The software company publishes its Q4 earnings on Tuesday. The stock is already up some 14% this year.

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Market Event Update:

🏛️ Fed decision.

  • The Federal Reserve is maintaining its key interest rate at 5.5% to manage elevated inflation, despite strong economic activity and job gains.

  • Inflation has shown signs of easing, with the 12-month rate dropping to 3.3% in May, leading to speculation about a possible rate cut in the fall if this trend continues.

  • The Fed faces external pressure to cut rates, but remains committed to data-driven decisions, aiming for consistent positive inflation data before considering changes.

Credit: Upstox

🇺🇸 US inflation.

  • The U.S. Consumer Price Index (CPI) was unchanged in May, with the year-over-year rate at 3.3%, slightly below expectations, reducing immediate pressure on the Federal Reserve to cut interest rates before September.

  • Core CPI, excluding food and energy, rose 0.2% in May and 3.4% year-over-year, the smallest annual increase since April 2021, indicating progress towards the Fed's 2% inflation target.

  • Market reactions were positive, with stocks rising, bond yields falling, and the dollar weakening, as investors interpreted the data as a sign of easing inflation and potential future rate cuts.

Credit: Fox Business

🔮 Oracle earnings.

  • Oracle announced significant cloud infrastructure deals with Microsoft, OpenAI, and Google, aiming to boost AI training capabilities through expanded data centers and partnerships.

  • Oracle expects continued strong cloud demand and double-digit revenue growth driven by the need for data centers and cloud capacity to support advancing AI models.

  • Oracle differentiates itself by offering comprehensive data center services, including sovereignty solutions, which are critical for government and other security-focused customers.

Credit: Bloomberg