On Friday the Commerce Department reported that the personal consumption expenditures (PCE) price index improved 0.3% in February.
The main indices of Wall Street They operate negative this Monday, April 1. As Dow Jones and S&P 500 fall, the Nasdaqwith a large technological component, is almost unchanged, driven by the advance of mega-cap values against hopes for an early interest rate cut by the Federal Reserve after data that showed signs of a inflation moderation.
In that context, the Dow Jones Industrial Average loses 269.12 points, or 0.7%, to 39,538.25 units; the index S&P 500 gives up 18.22 points, or 0.4%, to 5,236.13 units; and the Nasdaq Composite remains almost unchanged 16,365.05 units.
Economic data shows US inflation slowing
The data of the Department of Commerce on Friday showed that the price index of personal consumption expenditures (PCE) – the preferred inflation indicator of the Fed– improved 0.3% in Februarycompared to estimates of a 0.4% rise, according to economists surveyed by Reuters.
He report reinforced bets on rate cuts and money markets now value at a 66% the possibility that there will be at least a reduction of 25 basis points in Junedepending on the tool FedWatch of CME Group.
P4 – Jerome Powell (RE_opt.jpeg
The president of the Fed, Jerome Powellsaid the latest inflation data is “in line with what we want to see,” comments that appeared to keep the central bank’s baseline for rate cuts this year intact.
Nasdaq fueled by mega-cap stocks
The most mega cap growth stocks -whose cash flows are usually discounted in a regime of higher rates- they advanced. Microsoft, Nvidia, Alphabet and Amazon.com They improved between 0.8% and 2.6%.
Nine of the 11 major S&P 500 sectors were trading lowerwith public services leading the losses with a decrease of 1%, while communication services rose 1.4%.
He Philadelphia Semiconductor Index gained 2.4%, with chip manufacturers such as Micron Technologyand Marvell Technology climbing 7% and 3.7%, respectively.
Source: Ambito
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