US stocks rally as inflation cools further, heading for strong 2nd-quarter gains

• US stocks rallied as inflation cooled further, heading for strong second-quarter gains.
• The core PCE index climbed 4.6% in May from a year ago, down from the prior month's annual rate of 4.7%.

US stocks rallied on Friday as inflation showed further signs of cooling, with investors looking to close out a strong second quarter.

The Federal Reserve's preferred inflation gauge, the core Personal Expenditure Price index, climbed 4.6% from a year ago in May, down from April's annual rate of 4.7%.

As the second quarter comes to a close, the S&P 500 is up 7%, the Nasdaq is up 11.2%, and the Dow is up 2.55%. For the year to date, the S&P is up 14.5%, the Nasdaq 30%, and the Dow 2.94%.

Here's where US indexes stood as the market opened 9:30 a.m. on Friday:

S&P 500: 4,433.10, up 0.83%

Dow Jones Industrial Average: 34,318.14, up 0.57% (195.72 points)

Nasdaq Composite: 13,735.75, up 1.06%

Here's what else is going on:

• Apple stock jumped above a $3 trillion valuation for the first time since January 2022.
• As Tesla's old-guard rivals pile into EVs, the company's rally is bound to end, an analyst said.
• Though a recession is a 2024 worry, investors should still diversify away from Big Tech, a Citi strategist said.
• AI stocks may be in a bubble, but there's a few worth holding, Anthony Scaramucci said.

In commodities, bonds, and crypto:

• The West Texas Intermediate inched upward by 0.25% to $69.89 a barrel. Brent crude, the international benchmark, edged up 0.24% to $74.43 a barrel.
• Gold dipped 0.55% to $1,905.80 per ounce.
• The 10-year yield moved 1 basis point up to 3.862%.
• Bitcoin climbed 1.39% to $30,975.