US Core PCE Price Index (YoY) (Jul) 2.6% vs +2.7% Est.
Portfolio Pulse from Benzinga Newsdesk
The US Core PCE Price Index for July came in at 2.6% year-over-year, slightly below the estimated 2.7%. This indicates a slower-than-expected increase in core inflation, which could influence market expectations regarding future interest rate hikes.
August 30, 2024 | 12:30 pm
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POSITIVE IMPACT
The SPDR S&P 500 ETF (SPY) may see a positive impact as the lower-than-expected Core PCE Price Index suggests a slower pace of inflation, potentially reducing the likelihood of aggressive interest rate hikes.
The Core PCE Price Index is a key measure of inflation. A lower-than-expected figure suggests that inflation is not accelerating as much as anticipated, which could lead to a more dovish stance from the Federal Reserve. This is generally positive for equities, including SPY, as it reduces the pressure for higher interest rates that can dampen economic growth and corporate profits.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80