US OPEN: Markets Steady Despite Slightly Hotter Core PCE

• S&P 500 breaks above February highs

• Blurry inflation landscape supports Treasury yields.

Wall Street trades with a great dose of optimism on Friday, following “not so tragic” inflation data, which, combined with hopes of closing major trade deals, soothe worries of tariff-driven inflationary spiral. The S&P 500 ticks up 0.5%, breaking over the mid-February peak (currently at 6172). Other major indices are also in the green (DJIA: +0.7%, Nasdaq: +0.5%, Russell 2000: 0.35%).

Core PCE inflation rose by 0.2% in May, pushing the annual rate to 2.7% and slightly surpassing expectations. While headline inflation remained modest, the sticky core reading highlights the ongoing difficulty in steering inflation back to the Fed’s 2% target. This reinforces the Fed’s cautious stance, as reflected in today’s market reaction, with the decline in the 10-year Treasury yield coming to a halt.

Volatility in S&P 500 sectors. Source: Bloomberg Finance LP

US100 (H1)

The US100 index futures contract is diving nearly 100 points today from its all-time high at 22,787. However, it quickly recovers about 50% of the drop. Technical indicators currently suggest a mostly neutral stance toward the market. Among the indicators shown on the chart, only the 25-period Exponential Moving Average (EMA 25) signals potential upside, as the price has bounced off this level.

Meanwhile, the RSI, MACD, and Bollinger Bands show no clear directional signal — the RSI remains within the 30–70 range, the MACD is hovering near the signal line, and the price is positioned right in the middle of the Bollinger Bands.

Nonetheless, further gains in the US100 cannot be ruled out as long as no significant and unexpected geopolitical events occur and until next week's key macroeconomic data potentially shifts investor sentiment.

Source: xStation 5

Company News:

• Nike (NKE.US) surged over 15% after reporting better-than-expected sales trends and receiving several price target upgrades. Analysts see signs of a turnaround as the company focuses on cleaning up inventories and stabilizing margins.

• Atlantic Union Bankshares adds 1% following the sale of $2 billion in commercial real estate loans to Blackstone. The move allows the bank to lower funding costs and strengthen its securities portfolio.

• BioCryst (BCRX.US) is down 1.5% after selling its European Orladeyo business for up to $264M to Neopharmed Gentili. The proceeds will be used to eliminate debt and improve operating margins.

• Li Auto (LI.US) dropped 3% after cutting its Q2 vehicle delivery forecast due to a temporary sales system upgrade. However, the company reaffirmed long-term confidence tied to the upcoming Li i8 model.

• CorMedix plummeted 18% as it priced a share offering at up to $13.09, a 14% discount to Thursday’s close. The funds will support working capital and strategic projects.