CPI eases rate fears

Kim Khan· Host0:00

[instrumental music] Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis. Good afternoon. Today is Wednesday, June tenth, and I'm your host, Kim Khan. Our top story so far: inflation continued to move higher in May, but not by as much as markets had feared. The consumer price index rose four point two percent from a year ago, matching expectations and accelerating from April's three-point-eight percent pace. On a monthly basis, prices increased zero point five percent. Energy accounted for more than sixty percent of the monthly increase, rising three point nine percent, while shelter gained zero point three percent and food prices rose zero point two percent. Core CPI, which excludes food and energy, rose zero point two percent in May, below expectations for a zero point three percent increase. That left the annual core inflation rate at two point nine percent, up slightly from two point eight percent in April. While both headline and core inflation remain above the Fed's two percent target, Harvard economist Jason Furman said declines in shelter and core goods prices were encouraging and that the report contained little that would force the Fed to raise rates anytime soon. Following the numbers, Fed funds futures modestly reduced the odds of a rate hike later this year. Treasury yields were little changed. Among active stocks, Super Micro Computer is plunging after unveiling plans for up to seven billion dollars in equity and equity-linked financing to help fund purchases of components needed to fulfill demand for its AI servers. The proposal includes public offerings and an at-the-market stock sale program that could begin as early as