After the release of the US CPI data, the three major US stock index futures rose in the short term, while US bond yields and the US dollar index fell, and gold, silver, and copper all rose

The yield on the 10-year US Treasury bond fell by 2.54% to 4.292%, while the yield on the 30-year Treasury bond dropped to 4.451%. The US Dollar Index fell by 0.7% intraday to 104.52. The US core CPI for May fell to a three-year low on a year-on-year basis. Traders have fully digested the possibility of a rate cut by the Federal Reserve in November and are expecting two 25 basis point rate cuts later this year

On Wednesday, June 12th, after the release of the US May CPI data, the futures of the three major US stock indexes rose in the short term. Nasdaq futures rose nearly 1%, S&P 500 index futures rose 0.79%, and Dow Jones futures rose 0.65%.

The short-term US Treasury bond yields fell, with the 10-year Treasury bond yield down 2.54% to 4.292% and the 30-year Treasury bond yield down to 4.451%.

The US Dollar Index declined in the short term, dropping 0.7% to 104.52. The euro rose nearly 50 points against the US dollar, the pound rose nearly 70 points against the US dollar, and the US dollar fell nearly 90 points against the Japanese yen in the short term.

Spot gold rose over 0.5% intraday to $2328.71 per ounce. Spot silver rose nearly 2% to $29.84 per ounce. London copper futures rose 1.82% to $9937.

Earlier, data released by the US Bureau of Labor Statistics showed that the US May CPI increased by 3.3% year-on-year, slightly lower than the previous and expected 3.4%; the month-on-month CPI in May increased by 0%, lower than the expected 0.1%, and significantly slower than the previous value. Excluding food and energy costs, the core CPI in May increased by 3.4% year-on-year, the lowest in over three years, lower than the expected 3.5% and the previous 3.6%; the month-on-month core CPI growth rate decreased from 0.3% in April to 0.2%, slightly weaker than the expected 0.2%.

Some analysts pointed out that the significant cooling of inflation in the US in May is an encouraging sign for Federal Reserve officials. Traders are now fully reassessing the possibility of a rate cut by the Fed in November and expect two 25 basis point rate cuts later this year The repricing of interest rate swap contracts has strengthened expectations for a rate cut by the Federal Reserve. Traders have raised the probability of a rate cut in September to 72%. "This is a very weak report," said Daniel Mulholland, Senior Managing Director at Crews & Associates. "The Fed is now very likely to cut rates in September."

Here is the update as of 17:30:

On Wednesday, June 12th, before the U.S. stock market opened, the three major stock index futures saw slight gains, with Dow futures up 0.11%, S&P 500 futures up 0.12%, and Nasdaq 100 futures up 0.12%.

In the tech sector, Oracle rose nearly 9% in pre-market trading, despite disappointing financial reports, due to partnerships with OpenAI and Google. Among the "Seven Sisters" of U.S. stocks, Nvidia saw a slight increase.

GameStop fell nearly 6% in pre-market trading after announcing a stock issuance to raise approximately $2.137 billion.

Chinese concept stocks showed mixed movements in pre-market trading, with Zhihu rising over 2% as its first-quarter total revenue exceeded expectations. Nio fell by 3.59%, XPeng rose by 0.4%, Li Auto fell by 1.89%, Alibaba dropped by 0.6%, and NetEase rose by 0.5%.

In market news, the "most exciting Wednesday" has arrived, with the U.S. CPI and Fed decision tonight, global investors are on high alert.

Here are the key points to watch:

Focus on the month-over-month core CPI, if the core CPI and key OER rent are weaker than expected, the market may start pricing in a rate cut in July.

The month-over-month core CPI will also be a key variable determining the movement of the U.S. stock market that day. A core inflation rate increase above 0.3% will bring pressure to the market, with a probability of 25% for an increase between 0.25% - 0.30%, the S&P 500 index is expected to rise by 0.75% to 1.25%.

The FOMC Fed is highly likely to "stand pat" this time. Most analysts expect the number of rate cuts forecasted in the March dot plot to be revised down from three times to two times or even once, with some even predicting no rate cuts this year

If inflation heats up again beyond expectations, it may prompt more Fed officials to lower the number of interest rate cuts this year to once in the "dot plot"; if the data largely meets expectations, the expectation of two interest rate cuts this year may prevail.

European stocks rise collectively

The French CAC 40 index rose by 0.25%, the German DAX 30 index rose by 0.42%, the UK FTSE 100 index rose by 0.63%, and the Euro Stoxx 50 index rose by 0.38%.