The personal consumption expenditures (PCE) price index – the Federal Reserve’s preferred gauge of inflation – was unchanged in May and rose 2.6% year-on-year, the US Commerce Department reported.
The Major Wall Street Indices they go up this Friday after meeting a inflation data that reinforces hopes for interest rate cuts in September. The shares of Nike they fall after a poor annual sales forecast.
In this context, the S&P 500 index gains 16.90 points, or 0.3%, to 5,499.77 units, while the Nasdaq rises 53.28 points, or 0.3%, to 17,911.97 units. Meanwhile, the Dow Jones Industrial Average adds 104.84 points, or 0.3%, to 39,268.90 units.
The economy cools and strengthens Hopes for interest rate cuts
He Department of Commerce reported that the personal consumption expenditures (PCE) price index -the preferred inflation indicator of the Federal Reserve– remained unchanged in May and rose 2.6% year-on-yearin line with expectations.
If the volatile food and energy components are excluded, the underlying figure rose 0.1% in the month and 2.6% in the annual rate.
The probability of a rate cut in September rose to 68%from 61% before the data, according to data from LSEG FedWatch.
“It’s a perfect report: It gives the Fed the green light to cut rates in September and sets the stage for dovish rhetoric to continue,” said Jay Woods, chief global strategist at Freedom Capital Markets.
Traders maintained their bets on two cuts despite the Fed’s forecast of only one this year.with the hope that the downward trend in inflation will continue and while the economy remains susceptible to the highest rates in decades.
wall street markets bags usa
Reuters
Large cap companies like Apple and Nvidia rise between 0.1% and 1.9%. Shares of Amazon.com For its part, it fell 1.2% after starting on the rise.
Most S&P 500 subsectors rose, led by technology stocks. He Russell 2000 Small-cap stocks rose 0.3% after hitting a more than two-week high during trading.
However, Nike plummets 19.3% after predict a surprise drop in tax revenues for 2025which weighed on the luxury consumption sector in general.
Source: Ambito
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