Major indices are moving higher across the board following this morning’s CPI report that came in-line with expectations on both core and headline numbers (more below).

Six sectors are moving higher with Technology (XLK) in the lead. Semiconductors and the AI trade are getting a boost following several favorable earnings reports in the space, including CoreWeave (CRWV), Nebius (NBIS), Lumentum (LITE), and Super Micro Computer (SMCI). Real Estate (XLRE) is the runner up and getting a boost from a move lower in rates, rate expectations, and data center REITs moving higher following favorable neocloud earnings reports. On the flip side, Consumer Discretionary (XLY) and Communication Services (XLC) are at the bottom of the list, with weakness in their mega-cap components contributing to the move lower. Notably, Meta Platforms (META) is lower after the Ninth Circuit refused to toss the more than 3,000 youth addiction suits against it, letting the cases proceed just as the state trial gets underway.

All of the top 10 advancers in the S&P 500 are centered in Technology and the AI trade.

CPI Data & Reaction

Notably, energy is still deflating on the month as energy commodity prices remain below their prior high at the start of the conflict. Meanwhile, medical care products and food at home also saw a move lower over the month. On the other hand, services, apparel, and vehicles saw an uptick.

Following the CPI release, the Ten-Year Treasury Yield (TNX) edged 1.2 basis points lower.

Furthermore, the odds of no change in the next FOMC meeting have risen sharply.