Morgans AM: Wednesday, 14 June 2023

US equity markets advanced to fresh 14-month highs after the pace of inflation eased to its lowest level in more than two years, bolstering investors’ view that the Federal Reserve will not raise interest rates when their latest two day monetary policy meeting concludes tomorrow morning AEST - Dow rose +146-points or +0.43%, Home Depot Inc (down -0.26%) hosted an Investor Conference overnight The broader S&P500 gained +0.69%, with Materials (up +2.33%) leading ten of the eleven primary sectors higher. Utilities (down -0.06%) was the only primary sector to settle in the red overnight. Tesla Inc extended its rally into a record thirteenth consecutive session, rallying +3.55% to US$258.71 and its highest close since 30 September. The electric vehicle manufacturer’s was also the most actively traded stock in both the S&P500 and Nasdaq 100 overnight. The Nasdaq rallied +0.83%. Nvidia Corp gained +3.90% to US$410.22, officially becoming just the seventh public US company to close with a market capitalisation above >US$1 trillion after previously flirting with that milestone on an intra-day basis. The chipmaker is up ~181% year-to-date. Only Apple Inc (down -0.26%), Amazon.com Inc (up +0.07%), Google parent Alphabet Inc (+0.15%), Tesla, Meta Platforms Inc (+0.10%) and Microsoft Corp (+0.74%) previously crossed the US$1 trillion threshold at the close of a trading day, according to Dow Jones Market Data. Tesla and Meta have since dropped out of the US$1 trillion club. Advanced Micro Devices shed -3.61% after officially unveiling several products at its Data Centre & AI Technology Premiere event in San Francisco overnight meant to take on Nvidia Corp and Intel Corp (up +2.54%) The small capitalisation Russell 2000 climbed +1.23%.