Stocks Rise on Chip Outlooks, Spending Data; Rate Bets Trimmed

US stocks opened higher on Thursday, driven by a combination of in-line inflation data and a wave of bullish outlooks from major chipmakers. The personal spending data for May came in as expected, easing concerns that the Federal Reserve might need to accelerate its tightening cycle. Meanwhile, semiconductor companies issued optimistic revenue forecasts, reinforcing confidence in the demand outlook for artificial intelligence and other high-growth sectors.

The market reaction reflects a recalibration of interest rate expectations. Traders trimmed bets on further rate hikes after the inflation data showed no upside surprise, which supports the view that the Fed can maintain its current stance. The bond market saw yields edge lower, with the 2-year Treasury yield falling as the probability of a rate increase in the near term diminished. Live rates and charts on NowPrice show how the yield curve is responding to the shifting rate expectations.

Looking ahead, investors will focus on the upcoming Fed speeches and the next round of economic data, including jobless claims and manufacturing surveys. The chip sector's momentum will also be closely watched, as any reversal in demand could alter the risk-on sentiment. The key levels to monitor are the S&P 500's resistance near its all-time high and the 10-year yield's support around 4.20%.