Fed's Preferred Inflation Gauge Falls To Lowest Level Since March 2021, Relieves Trader Interest Rate Worries (CORRECTED)
Portfolio Pulse from Piero Cingari
The Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditure (PCE) index, fell to its lowest level since November 2021, easing trader concerns about interest rate hikes. Personal income rose more than expected, while personal spending grew less than predicted. The news led to a decline in Treasury yields and a rise in equity futures, with the SPDR S&P 500 ETF Trust (SPY) closing 0.2% higher on Thursday.
June 28, 2024 | 12:40 pm
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The SPDR S&P 500 ETF Trust (SPY) closed 0.2% higher on Thursday, marking its third straight session of gains, as the PCE index fell to its lowest level since November 2021, easing concerns about interest rate hikes.
The decline in the PCE index, which is the Fed's preferred measure of inflation, eases concerns about future interest rate hikes. This positive sentiment is reflected in the SPY's recent gains.
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