US inflation continues to decline, market sentiment is optimistic, Bitcoin has surged by 80% in the first half of this year

The Personal Consumption Expenditures Price Index (PCE), closely watched by the Federal Reserve, saw a significant decline in May. According to data released last Friday, inflation in the United States continues to fall, spreading optimism in the market as major stock indices rose across the board. Apple's market value officially surpassed $3 trillion.

US PCE Slips, Market Remains Optimistic

Last Friday, the Personal Consumption Expenditures Price Index (PCE) for May saw a significant decline, with the US PCE year-over-year increase at 3.8% in May, down from the previous 4.3%; the core PCE stood at 4.6%, slightly lower than the previous 4.7%.

Despite recent hawkish comments from Federal Reserve Chairman Powell and several officials, indicating a high likelihood of a two-step interest rate hike this year, the market sentiment, as observed by CME's Fedwatch tool, suggests that a single rate hike in July is widely expected. The probability of a one-step increase or maintaining the rate at year-end shows less variation, indicating that market sentiment remains relatively optimistic about the easing of inflation.

Moreover, the non-farm payroll report scheduled to be released this Friday will be the next key indicator for the market. The Federal Reserve's next interest rate decision meeting is set for July 26th.