Fed's Preferred Inflation Gauge Set To Drop To 38-Month Low: 'This Could Provide The Impetus For Another Rally To Fresh Highs'
Portfolio Pulse from Piero Cingari
The upcoming release of the Personal Consumption Expenditure (PCE) price index, the Federal Reserve's preferred inflation measure, is expected to show a decrease, potentially boosting market confidence and leading to a rally in stock prices. Economists predict a slight drop in both the headline and core PCE inflation rates for May, which could strengthen expectations for future interest rate cuts.
June 26, 2024 | 8:53 pm
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POSITIVE IMPACT
The Invesco QQQ Trust, which tracks the Nasdaq 100 index, could see a positive impact if the PCE inflation data shows a decrease as expected. This would bolster market confidence and potentially lead to a rally in tech stocks.
A decrease in PCE inflation data would likely boost market confidence, particularly in tech stocks, which are heavily represented in the Nasdaq 100 index tracked by QQQ.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust, which tracks the S&P 500 index, could benefit from a potential rally if the PCE inflation data shows a decrease. This would strengthen expectations for future interest rate cuts and boost overall market sentiment.
A decrease in PCE inflation data would likely strengthen expectations for future interest rate cuts, boosting overall market sentiment and benefiting the S&P 500 index tracked by SPY.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80