Fed's Preferred Inflation Measure Shows Mixed Readings, Personal Income, Spending Fall: September Rate Cut Remains Likely
Portfolio Pulse from Piero Cingari
The Personal Consumption Expenditure (PCE) price index showed mixed readings in June, with a slight decline in annual inflation and steady core inflation. Personal income and spending also fell more than expected. These indicators support the likelihood of a Fed rate cut in September. Treasury yields declined slightly, while equity futures rose.
July 26, 2024 | 12:44 pm
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The SPDR S&P 500 ETF Trust (SPY) saw a 0.5% decline on Thursday. However, equity futures rose in premarket trading following the mixed PCE inflation data, indicating a potential rebound.
The mixed PCE inflation data supports the likelihood of a Fed rate cut in September, which is generally positive for equities. This has led to a rise in equity futures, suggesting a potential rebound for SPY.
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