Fed's Preferred Inflation Gauge Comes In Below Expectations For August, Easing Concerns About Rising Prices
Portfolio Pulse from Michael Cohen
The Federal Reserve's preferred inflation measure, the PCE Price Index, came in below expectations for August, easing concerns about rising prices. The U.S. dollar index rose, and futures on major U.S. equity indices increased in premarket trading.
September 27, 2024 | 12:42 pm
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POSITIVE IMPACT
Futures for the Dow Jones Industrial Average, tracked by SPDR Dow Jones Industrial Average ETF (DIA), rose 0.17% in premarket trading following the PCE Price Index release.
The PCE Price Index coming in below expectations suggests reduced inflationary pressures, contributing to a 0.17% rise in DIA futures.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Futures on the S&P 500, tracked by SPDR S&P 500 ETF Trust (SPY), rose 0.22% in premarket trading after the PCE Price Index came in below expectations, easing inflation concerns.
The lower-than-expected PCE Price Index reduces inflation concerns, leading to a positive reaction in equity futures, including a 0.22% rise in SPY.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The Invesco DB USD Index Bullish Fund ETF (UUP) rose 0.2% following the release of the PCE Price Index, which came in below expectations, indicating a stronger U.S. dollar.
The PCE Price Index coming in below expectations suggests lower inflation pressures, which can strengthen the U.S. dollar. This is reflected in the 0.2% rise in UUP.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80