Wall Street Lunch: Inflation Rises In May, But Softer Core Prices Calms Fed Fears

May CPI rose 4.2% year over year, matching expectations, while core CPI increased 0.2%, below forecasts, easing immediate Fed rate-hike concerns. Separately, Supermicro said it plans up to $7B in equity and equity-linked financing to support AI server demand, a move that triggered a sharp stock decline and raises dilution concerns.

Analysis

May CPI rose 4.2% year over year, matching expectations, while core CPI increased 0.2%, below forecasts, easing immediate Fed rate-hike concerns. Separately, Supermicro said it plans up to $7B in equity and equity-linked financing to support AI server demand, a move that triggered a sharp stock decline and raises dilution concerns.