Nasdaq Rises For Record Close Day 📅 | PPI Data Gets Shrugged Off By Market 📈 | CPI Report Tomorrow & What To Expect 🤓 | Google Releases New AI Features 🐳
Nasdaq Closes On Record High 👀 Ahead Of CPI
The meme stock rally has not ended while the leaders & rallied throughout their trading sessions despite being stopped a combined 38 times throughout the day. President Biden announced new China tariffs on an array of goods, the White House plans to raise duties on $18B in Chinese imports ranging from electric vehicles to medical devices and everything in between. Lets take a look at how our indexes finished on the day:
The S&P500 saw 0.3% rise
The Dow Jones Industrial jumped 0.5%
The Nasdaq Composite added 0.8% to reach a new record close
On the economic data front wholesale prices increased 0.5% which surpassed the 0.3% increase that the street was expecting, this release showed March’s price increase revised lower to 0.1% from an initial reading of 0.2% for PPI in March. The confusing report allowed traders to shrug off the mixed numbers and continue to look forward to the much anticipated CPI report that releases tomorrow.
The content below was originally paywalled.
CPI Report | What To Watch 👀
Inflation Insights: What to Expect from the Upcoming CPI Report 📝
Get ready for the highly anticipated Consumer Price Index (CPI) report, set to release on Wednesday! Economists are predicting a “relatively firmer headline CPI print” due to higher energy prices, driven by an increase in gas prices. However, the good news is that gas prices have fallen in May, which could challenge further increases in the near term.
Core Inflation: The Sticky Situation 🤑
While energy prices may be volatile, “core” inflation, which excludes food and gas, is expected to remain sticky due to higher costs of shelter and core services like insurance and medical care. In March, we saw sharp upticks in core services like motor vehicle insurance and maintenance, but economists expect these trends to reverse.
Rent and Healthcare: A Glimmer of Hope 🤞
Morgan Stanley predicts a deceleration in rent inflation, driven by cooling labor markets and weak data on new leases. Additionally, healthcare costs are expected to slow down, driven by lower health insurance prices.
Google New AI Announcements 📈
Google recently unveiled a range of generative AI products at its I/O developer conference, aiming to reclaim its position as a leading AI company after being caught off guard by Microsoft’s partnership with OpenAI in 2022. The new products include updates to Search, Android, and Workspaces platforms, as well as a new personalized AI assistant called Gemini Live.
The most significant announcement is the integration of generative AI results at the top of the Search platform, which is now available to all US users and will roll out globally in the coming future. Google’s new AI assistant, Gemini Live, powered by the Gemini 1.5 Pro model, allows users to speak directly to the assistant on their mobile devices and receive responses in natural-sounding voices.
Google is also expanding its Android assistant to interact with apps like Google Messages and Gmail, allowing users to drag and drop generated images from Gemini into texts and emails. The company is also updating its on-device version of Gemini, called Gemini Nano, with new multimodal features. In the coming months, Gemini Live will be able to access a user’s cameras, allowing the assistant to interact with the real world and things it sees. Google’s Workspace is bringing its more powerful Gemini 1.5 Pro model to its side panel in Workspace apps, allowing users to continue working in an app while using Gemini in a smaller side panel.
Google’s biggest rivals, Microsoft and Apple, are set to debut their own major generative AI updates in the coming weeks, making it a crucial time for Google to establish its position in the AI market.
