Inflation cools down, US stock indexes gap up and then narrow their gains, chip stocks rise across the board, NVIDIA is up 3%, while Nike plunges 19%

On Friday, June 28, the three major U.S. stock indexes opened higher in the morning, but gave back most of the gains in the first hour and a half.

The tech-heavy Nasdaq rose nearly 1% or 176 points at one point; the Dow, which opened lower, turned positive and rose by over 0.7%; the S&P 500 index strengthened, rising by about 0.74%.

In addition, the Nasdaq 100 index rose by about 1.1%, hitting a new intraday high and breaking through the 20,000 point mark for the first time.

Tech stocks had mixed performances. Microsoft turned positive, rising by 0.56% before slightly pulling back; Apple's stock price fluctuated, initially dropping by 0.25% before rebounding by over 0.5%; Google Class A maintained its downward trend, dropping by 1.4% at the beginning and gradually narrowing the decline; Amazon went from nearly 1% decline to a 0.5% increase, erasing all gains and turning negative; Meta opened with a drop of over 1.15%, then rose directly to nearly 0.45%; Tesla maintained its upward trend, rising by over 2.8% at one point; Netflix turned from a 0.78% decline to a 0.39% increase, and is now back in negative territory.

Chip stocks rose across the board. The Philadelphia Semiconductor Index and the industry ETF SOXX both rose, gaining nearly 3%; NVIDIA surged by 3% at one point before giving back some gains; the NVIDIA 2x Long ETF rose by about 0.6%; TSMC's U.S. stock rose by about 3%, Micron Technology rose by about 2.4%, and Qualcomm rose by about 4.5%.

On the news front, Morgan Stanley stated on Friday that even though central banks may be reluctant to take preemptive action, both the Federal Reserve and the ECB may cut interest rates in September. The EU's antitrust commissioner announced on Friday that further antitrust scrutiny will be conducted on Microsoft's $13 billion investment in OpenAI, as well as the EU's investigation into OpenAI's exclusive use of Microsoft's cloud technology.

AI concept stocks had mixed performances, with most popular Chinese concept stocks trending lower - XPeng fell by over 4.5%, Nio fell by over 3.3%, retail investor concept stocks saw slight gains, and cryptocurrency concept stocks collectively declined.

Among stocks with significant volatility, Nike fell by over 19% due to lower-than-expected fourth-quarter revenue and a downward revision of performance guidance.

The following is the update before 21:50 Beijing time

On Friday, June 28, U.S. inflation cooled down, and the three major U.S. stock indexes rose collectively, with the Dow up by 0.39%, the Nasdaq up by 0.18%, and the S&P 500 up by 0.29% Most semiconductor stocks rose, with TSMC up about 1% and NVIDIA slightly up.

Nike fell by about 18%, marking the largest intraday decline since 2001, as the company's fourth-quarter revenue fell short of expectations.

Most major industry ETFs rose, with regional bank ETFs and semiconductor ETFs leading the gains.

Chinese concept stocks mostly fell, with XPeng down over 2%, JD, Li Auto, and Nio down over 1%.

On the news front, the U.S. Department of Commerce data shows that the U.S. May PCE price index month-on-month growth rate fell from 0.3% in April to 0%, the lowest since November 2023, in line with market expectations; the year-on-year growth rate also fell from the previous month's 2.7% to 2.6%, in line with expectations.

More importantly, excluding the volatile food and energy prices, the May core PCE price index year-on-year growth rate hit the lowest level since March 2021, falling from 2.8% in April to 2.6%, also in line with expectations. At the same time, the month-on-month growth rate of the core PCE price index in May was 0.1%, the lowest since December 2023.

Mixed performance in European stocks, French stocks and bonds decline

The Euro Stoxx 50 index fell by 0.3%, the German DAX30 index rose by 0.05%, the UK FTSE 100 index rose by 0.24%, and the French CAC 40 index fell by 0.82%.

French government bonds fell, with the 10-year bond yield rising by 6 basis points to 3.33%, breaking recent highs and reaching the highest level since November last year, with the increase now significantly narrowing. The yield spread between French and German 10-year bonds rose by 4 basis points to 86 basis points, the highest since 2012. As France holds the first round of National Assembly elections on Sunday, market volatility reflects increasing uncertainty