Fed's Preferred Inflation Gauge Matches Estimates; Personal Spending Slows More Than Predicted (CORRECTED)
Portfolio Pulse from Piero Cingari
The Federal Reserve's preferred inflation measure, the PCE price index, held steady in April, matching expectations. However, personal income and spending growth rates slowed more than predicted, indicating a deceleration in consumer momentum. This has led to a slight downtick in Treasury yields and mixed market reactions.
May 31, 2024 | 12:43 pm
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NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) saw a 0.3% increase in premarket trading despite mixed economic data. The steady PCE inflation rate and slowing personal income and spending growth have led to a slight downtick in Treasury yields.
The SPY ETF is reacting positively in premarket trading despite mixed economic data. The steady PCE inflation rate aligns with expectations, while the slowdown in personal income and spending growth has led to a slight downtick in Treasury yields. This mixed data suggests a neutral short-term impact on SPY.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80