Fed's Favorite Inflation Metric Accelerates In September, Personal Income Rises More Than Expected (UPDATED)
Portfolio Pulse from Piero Cingari
The Federal Reserve's preferred inflation measure, the core PCE index, rose slightly more than expected in September, potentially affecting future interest rate cuts. Personal income and spending also increased, while markets showed minimal reaction to the inflation data.
October 31, 2024 | 12:57 pm
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NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) fell 0.3% on Wednesday, ending a two-day winning streak, and futures were down 0.6% after the inflation data release.
SPY, which tracks the S&P 500, fell 0.3% on Wednesday and futures were down 0.6% after the inflation data, indicating a negative short-term impact due to concerns over future rate cuts.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
The Invesco DB USD Index Bullish Fund ETF (UUP) saw minimal impact from the latest PCE inflation report, maintaining its morning losses of 0.2%.
The UUP ETF tracks the U.S. dollar index, which showed minimal reaction to the PCE inflation report, maintaining its morning losses. This suggests a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 50
RELEVANCE 50