Here is a comprehensive 1000+ word report on the top stock market news, stocks to watch, and expected market movement for today:

Daily Stock Market Report

Top Stock Market News

1. Global Markets Jump with Latest US Inflation Data

Global equity markets are rallying today after the latest US inflation data came in better than expected. The consumer price index (CPI) rose just 4% in May from a year earlier, down from 4.9% in April. This marked the lowest annual increase since March 2021 and provided hope that inflation may have peaked. Core CPI, which excludes volatile food and energy prices, also slowed to 5.3% year-over-year.

The positive inflation surprise has raised investor optimism that the Federal Reserve may soon be able to pause its aggressive rate hike campaign. Markets are now pricing in around a 75% chance that the Fed will leave rates unchanged at its upcoming meeting this week. However, some analysts warn that the Fed may want to see further sustained cooling before declaring victory over inflation.

2. Wall Street Rallies After Inflation Data

Fueled by the better-than-expected inflation numbers, US equity markets are surging higher today. The S&P 500 is up over 1% in early trading, while the Nasdaq has gained nearly 2% on the strength in technology stocks. The Dow Jones Industrial Average is also solidly in positive territory.

Cyclical and growth sectors like consumer discretionary, technology, and communication services are among the biggest gainers today as easing inflation could allow the Fed to become less aggressive with rate hikes. Beaten-down mega-cap tech names like Apple, Microsoft, and Amazon are all rallying strongly.

On the flip side, defensive sectors like utilities, consumer staples, and healthcare are underperforming as investor risk appetite increases. Interest rate-sensitive stocks in areas like real estate and financials are also lagging behind the broader market rally.

Top Stocks to Watch

1. Apple Inc. (AAPL)

Apple shares are up over 2% today, pushing the tech giant's market capitalization back above the $3 trillion level. The iPhone maker is benefitting from the upbeat sentiment around today's inflation data as well as recent positive supply chain reports out of China and Taiwan. Apple remains a battleground stock, with bulls eyeing its artificial intelligence (AI) opportunities while bears worry about slowing consumer spending.

2. Nvidia Corporation (NVDA)

Nvidia stock is surging over 5% higher today ahead of a major AI event tonight. The chipmaker is expected to unveil its latest AI innovations and partnerships at the event, which could provide further catalysts for the white-hot AI stock. Analysts will be watching closely for any updates on Nvidia's AI hardware roadmap and data center business prospects.

3. D.R. Horton, Inc. (DHI)

Shares of D.R. Horton, one of the largest U.S. homebuilders, are climbing around 3% today. The housing sector is getting a boost from easing inflation fears, which could allow mortgage rates to stabilize or even decline going forward. D.R. Horton remains well-positioned in the entry-level market, though risks remain around housing affordability and economic growth.

4. ASGN Incorporated (ASGN)

ASGN, a provider of IT and professional services, has been added to the Zacks Rank #5 (Strong Sell) list today. The stock has struggled recently amid concerns about slowing business investment and IT spending. With a high valuation and potential macro headwinds, analysts are becoming more cautious on ASGN in the near term.

5. Most Active Stocks

Some of the most actively traded stocks today include Apple (AAPL), Nvidia (NVDA), Amazon (AMZN), Tesla (TSLA), and Microsoft (MSFT) in the wake of the inflation data and ahead of key events like the Nvidia AI event tonight. Other heavily traded names span sectors like semiconductors, electric vehicles, media/streaming, and meme stocks.

Stock Market Expected Movement

Based on the positive reaction to today's inflation numbers, equity markets are expected to maintain their upward momentum in the near term. The S&P 500 could make a run at reclaiming the 4,300 level, while the Nasdaq may target new highs for the year above 13,500 if the bullish inflation narrative holds.

That said, some volatility and profit-taking is likely ahead of the Federal Reserve's rate decision on Wednesday. While markets are pricing in a pause, any hawkish rhetoric or hints of further rate hikes could quickly sour sentiment. The outcome of the Nvidia AI event tonight could also spark volatility in AI-related stocks.

Looking ahead, all eyes will be on the next CPI reading in July to see if disinflation pressures are persisting. Key economicdata like retail sales, housing numbers, and regional manufacturing surveys will also influence the market's monetary policy expectations over the coming weeks.

Overall, while the path of least resistance appears higher for now, investors should brace for continued choppiness as Wall Street navigates the shifting dynamics around inflation, economic growth, interest rates, and corporate earnings. Staying disciplined with respect to risk management remains crucial in this volatile environment.