S&P 500 hits 5,000 as eyes turn to US CPI revisions [Video]

Appetite in risk assets remains robust. The S&P500 index shortly traded at the 5000 psychological mark before closing a few points below this level. The rally is not only fueled by rate cut expectations and AI speculation but is also backed – to some extent – by encouraging tech earnings from the stars of the league. Note that Apple, Microsoft, Alphabet, Amazon and Meta generated nearly $140bn cash from their operations last quarter. That was the highest on record.

The Bureau of Statistics will release the CPI revisions today, which consists of the revised month-over-month CPI figures for the past five years that could reveal if the downtrending US inflation numbers hide a more significant slowdown, or a late pick up. If the revisions hint at a slowing momentum in monthly inflation figures, the Fed doves should come back in charge and the dollar should ease. If the monthly revisions warn that inflation may not be slowing as fast as we think, the Fed doves will further retreat, and the dollar should gain. And if there are no major revisions, well all eyes will turn to next Tuesday, regular CPI update. And so goes life.

The US dollar struggles to gain further momentum above the 100-DMA. The EURUSD is offered near its own 100-DMA, the yen bulls are feeling the heat of a totally unexpected return to nearly 150 level at the start of this year and we see a second positive attempt above the $76pb level, despite a 5.5-mio barrel build in the US inventories.