The personal consumption expenditure price index, the Fed’s favorite, fell to 2.4% year-on-year in January, the smallest year-on-year increase since February 2021.
The main Wall Street indices are trading on the rise this Friday, March 1 after learning the previous day that the price index for personal consumption expenses (PCEfor its acronym in English), the favorite of the Fedwas reduced in January and revived bets on an imminent lowering of rates.
In this context, the index Nasdaq climbs 71.95 points (+0.5%) to 16,163.88 units, while S&P 500 it does so 15.74 points (+0.3%) to 5,112.01 units. He Dow Jones Industrial Average cautiously advances 18.30 points (+0.1%) to 39,014.69 units.
Artificial intelligence boosts Wall Street
He Nasdaqof great technological weight, closed on Thursday at historical highs, Driven by Gains in AI-Linked Stocksas the chip designer Nvidia and his rival Advanced Micro Deviceswhich traded at a record price.
The actions of Nvidiathe main driver of AI rally on Wall Street this yearrose 1.4%, while those of Advanced Micro Devices They advanced 3.1%, after a 9% rise in the previous session.
US inflation moderated and revived bets on lower rates
He PCE fell in January to 2.4% year-on-yearWhile the Underlying inflation fell to the 2.8%, one tenth below the previous month’s recordas reported this Thursday by the Office of Economic Analysis of the US Department of Commerce. Meanwhile, the December data revised downward to show 0.1% increaseinstead of the 0.2% previously announced.
In the 12 months to January, PCE inflation rose 2.4%, the smallest year-on-year increase since February 2021, after the 2.6% advance registered in December.
“Now that we have passed the PCE report, investors remain a bit on the sidelines“, said Paul Noltewealth advisor and market strategist Murphy & Sylvest.
Nolte said investors now await statements from the chairman of the Federal Reserve, Jerome Powelland the key employment data to be published next week for more clues on the path of monetary policy.
Source: Ambito
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