🚀 SPY & QQQ Rocket on Soft CPI Data—Proving Once Again Markets Prefer Cheap Money Over Jobs

Wall Street''s dopamine hit arrived right on schedule—soft inflation numbers sent SPY and QQQ screaming upward, effortlessly brushing off another lukewarm jobs report like a Goldman intern ignoring compliance training.

### The Fed''s Favorite Narrative Wins Again

Powell & Co. got their wish: CPI data came in cool enough to keep the ''pivot'' fantasy alive but not so cold to trigger panic. Traders inhaled the hopium and piled into tech—because why bet on Main Street when the money printer''s ghost still haunts the system?

### Jobs Data? What Jobs Data?

The ''weak'' employment figures got tossed in the memory hole faster than a Celsius withdrawal request. Market logic 2025 edition: bad news = good news = buy more leverage. Who needs productive economies when you''ve got infinite liquidity theater?

### Cynical Takeaway

Another day proving modern markets are just a CPI print away from either ecstasy or despair—with the SEC''s ''investor protection'' team watching from the sidelines like confused tourists at a crypto rug pull.

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May’s producer price index (PPI), an inflation gauge for sellers, rose by 0.1% month-over-month (MoM) and 2.6% year-over-year (YoY). Economists were expecting 0.2% and 2.6%, respectively. Core CPI, which excludes food and energy prices from the index due to their volatility, increased by 0.1% MoM and 3.0% YoY, both below the estimates for 0.3% and 3.1%, respectively.

Initial jobless claims, or new applications for unemployment benefits, weren’t as rosy. Claims totaled 248,000 for the week ended June 7, higher than the estimate for 242,000 and unchanged from the prior week. In addition, continuing jobless claims tallied in at 1.956 million, the highest level since November 2021 and above the expectation for 1.910 million.

Meanwhile, Goldman Sachs (GS) now expects a 30% chance of a recession over the next 12 months, down from 35%. The investment bank also increased its 2025 U.S. gross domestic product (GDP) growth estimate to 1.25% from 1.00%.

In other news, the Trump-Musk feud appears to be over. On Thursday, President TRUMP called the Tesla (TSLA) CEO a “friend” and said “I like Tesla.” This comes after Trump threatened to cut government contracts and subsidies to companies owned by Musk, although a White House official confirmed earlier this week that a process to review them hadn’t been initiated.

Trump also continued his criticism of Fed Chair Jerome Powell for not cutting the federal funds rate. “We’re going to spend $600 billion a year, $600 billion because of one numbskull that sits here [and says] ‘I don’t see enough reason to cut the rates now,''” said Trump in regard to government debt payments.

The S&P 500 ended with a 0.38% gain while the Nasdaq 100 finished higher by 0.24%.