Market Outlook for Next Week: US Stocks Hit New Highs but Funds Continue to Flow Out, Follow the Impact of CPI Data on Rate Cut Expectations

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According to reports, this week, the major US stock indices closed higher, with the S&P 500 index hitting a new high in over three months on Friday. The Dow Jones index also rose to a new high in three months. Better-than-expected non-farm payroll reports eased market concerns about the economy, while Tesla (TSLA.O) rebounded from a sharp decline on Thursday, and technology stocks continued to rise. However, as of June 4, US stock funds experienced outflows for the third consecutive week due to ongoing concerns about US trade policy. In the commodities sector, gold prices saw significant declines on Thursday and Friday, but overall still recorded a rise this week, closing at $3311.68 per ounce. Notably, although the US added non-farm payrolls in May slightly better than expected, Trump again pressured the Federal Reserve (FED) on social media, urging it to cut interest rates by 100 basis points. Here are the key points the market will focus on in the new week:

Monday 09:30, China's May CPI year-on-year;

Monday 22:00, US April wholesale sales month-on-month rate;

Monday 23:00, US May New York Fed 1-year inflation expectations;

On Tuesday, to be determined, China's May M2 money supply year-on-year rate;

Tuesday at 14:00, UK April three-month ILO unemployment rate, May unemployment rate, May jobseeker's allowance applicants;

On Tuesday at 15:10, European Central Bank Council Member Villeroy delivered a speech;

On Tuesday at 18:00, the US May NFIB Small Business Confidence Index;

Wednesday 20:30, US May CPI data

Wednesday 22:30, U.S. EIA crude oil inventory, Cushing crude oil inventory, Strategic Petroleum Reserve inventory for the week ending June 6.

Thursday 14:00, UK April three-month GDP monthly rate, manufacturing output monthly rate

On Thursday at 14:00, the UK's April seasonally adjusted goods trade balance and industrial output month-on-month.

Thursday 20:30, initial jobless claims in the U.S. for the week ending June 7, U.S. May PPI

Friday 14:00, Germany May CPI MoM Final

Friday 14:00, France May CPI month-on-month final value

Friday 22:00, US June one-year inflation rate expectation preliminary value, US June University of Michigan Consumer Confidence Index preliminary value.

The U.S. May CPI report, to be released next Wednesday, will test the market's optimistic sentiment towards interest rate cuts, as it may show a stagnation in the recent trend of declining inflation. In other economic data, the UK will release its three-month employment report ending in April next Tuesday, and the market will be watching for any signs of further layoffs.

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