IXIC: Nasdaq Composite Erases Session Gains as Cloudy Outlook Dampens Short-Term Glow-Up

Inflation came in under projections and that injected some short-lived buying momentum into stocks. The bigger picture? Cloudy, with a chance of tariffs.

🌀 Market Optimism Fades

• The Nasdaq Composite index IXIC initially rallied on the softer-than-expected CPI report, which showed inflation rose 2.4% in May, just under the 2.5% forecast. The short burst of buying, however, faded fast.
• The tech-heavy index ended the day down 0.5%, while the S&P 500 shed 0.3% and the Dow finished barely changed (one point under the flatline). The inflation print, though tamer than expected, still marked an uptick from April’s 2.3%, holding the Fed in a tricky spot.
• Traders had hoped cooler inflation would keep rate cut hopes alive, but uncertainty over tariffs and global trade overshadowed the brief CPI-driven rally.

🌓 Tariff Fears Cast Shadow Over Outlook

• President Donald Trump threw cold water on markets late Wednesday, saying he would unilaterally set tariff rates on US trading partners. “You can take it or leave it,” he told reporters, promising letters to be sent out in the next week or two.
• Trump said the US will slap 55% total tariffs on Chinese goods, reigniting fears of another trade war just as investors were starting to breathe easier.
• The aggressive tone added to broader market unease, especially in tech, where many companies are deeply exposed to global supply chains and export markets (looking at you, Apple AAPL, Nvidia NVDA.

🌌 Futures Point Lower as Volatility Brews

• Stock futures declined in early Thursday trading, suggesting Wall Street isn’t ready to brush off Trump’s tariff threats.
• The cooling inflation report is still in the mix, but it’s being outweighed by geopolitical and trade risks that are proving tough to price in.
• Presently, the Nasdaq's glow-up looks short-lived, as investors shift back to caution mode, shake risk off, and eye both the Fed's next move (coming next week) and the White House's next tweet (good luck timing that one).