Hartnett: Keep Taking Chips Off The Table

One week ago, BofA's Michael Hartnett warned that amid the spike in June event risk, including the May CPI, ECB (rate hike), BOJ (nearly certain rate hike), and FOMC decision (Warsh's first), the biggest one was the CPI, which came in line with expectations printing above 4.0% for the first time since 2023 (4.2% to be exact), which historically meant "risk assets get twitchy" - he cautioned that in the past 100 years once CPI crosses 4% on average SPX -4% next 3 months, -7% next 6 months.

And yet, neither the hot CPI, nor Friday's SpaceX record IPO, have managed to dent the market's euphoric mood - even if it did seem for a few hours that we were on the verge of cracking Thursday, after several days of intraday declines, when Trump pushed the "Peace deal imminent" button (for the 39th time), and stocks did their Pavlovian thing.