To The Moon

We saw the initial enthusiasm driven by a cooler-than-expected May CPI report was weared off by profit taking activities in later trading session. This caused the stock market to experience a dip on Wednesday (11 June 2025).

The S&P 500 saw its weekly gain reduced to 0.4% after a 0.3% drop, NASDAQ also saw a 0.5% decrease, also limiting its gain to 0.4%. DJIA remained stable, outperforming earlier this week and rising 0.2% since last Friday.

Initial enthusiasm driven by a cooler-than-expected May CPI report was tempered by profit taking later in the day.

May CPI Modest Increase, Potential Trade Developments

We saw the May's CPI data showed a 0.1% month-over-month increase, slightly below the consensus of 0.2%, with core CPI also up by 0.1%. The total CPI rose to 2.4% year-over-year, while core CPI remained steady at 2.8%.

The U.S.-China trade talks yielded no groundbreaking agreements but reaffirmed earlier commitments. U.S. maintained its 55% tariff on Chinese imports, supported by a Court of Appeals decision.

There have been potential trade developments include an interim deal with India and continued negotiations with the European Union and Mexico.

S&P 500 Sector Saw Only Energy Lead Significantly

Consumer discretionary and materials sectors faced the steepest declines, each down by 1.0%. Nucor (NUE) and Steel Dynamics (STLD) suffered due to possible reductions in Mexican steel tariffs.

Technology stocks initially performed well but later declined, with $Apple(AAPL)$ down 1.9% and $NVIDIA(NVDA)$ slipping by 0.8% despite early gains.

Quantum computing stocks, such as $Rigetti Computing(RGTI)$ and $Quantum Computing Inc.(QUBT)$, saw large gains but faced late profit taking.

The energy sector gained 1.5%, bolstered by rising tensions in the Middle East and a strong crude oil price increase of 5.0% to $68.21 per barrel.

Yield Fell Due To Cooler Than Expected CPI

10-year yield declined by six basis points to 4.41% as treasuries saw gains, this is due to the cooler-than-expected CPI.

We also saw the treasury budget deficit for May was was $316.0 billion, an improvement over the previous year's deficit, but the year-to-date deficit has grown by 13.6% year-over-year, though this represent a slower pace compared to previous months.

Stock To Watch

$Tesla Motors(TSLA)$ is preparing to launch its robotaxi service in Austin, Texas, on 22 June, with a limited fleet of self-driving Model Y SUVs. CEO Elon Musk emphasized safety as a priority, suggesting the date could change if necessary. The service is expected to expand to other U.S. cities later this year, potentially boosting Tesla's market presence in autonomous vehicles.

Looking at the longer timeframe for Tesla, we are seeing that the bulls are building the monthly uptrend with positive momentum, though we might see some volatility on Tesla share price along the way, there is still much positive sentiment pushing Tesla share price higher.

I believe the bulls are building the monthly uptrend continuation nicely, we should be able to see Tesla hitting a new high after the robotaxi service launch.

Summary

We saw the stock market dip at the end of trading session due to profit taking activities, though there was initial enthusiasm driven by cooler-than-expected May CPI data, but that did not stop the market to react to close in the red for S&P 500 and NASDAQ, though DJIA remained unchanged.

I believe there might be similar pattern for the remaining days of this week, we might see profit taking activities continuing while traders and investors comprehend the outcome of the U.S.-China trade talks.

So we might be able to pick up some good deals but remember to stay cautious as there are still development with the potential trade developments with other countries.

Appreciate if you could share your thoughts in the comment section whether you think market would continue to behave with potential profit taking activities.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.