Stocks poised for rebound after encouraging inflation data
The final session of a volatile trading week had stocks set for a rebound as new inflation data showed easing price pressures, boosting investor confidence in a widely expected September rate cut.
The Dow Jones Industrial Average (^DJI) added 0.6%, or about 200 points, after the blue-chip index eked out a closing gain. The S&P 500 (^GSPC) rose about 0.8%, while the Nasdaq Composite (^IXIC) climbed 1.1%, both coming off a failed attempt to rebound from this week's tech-led sell-off.
Fri, July 26, 2024 at 1:56 PM GMT+1
Fed's preferred inflation gauge steadies ahead of expected cuts
The latest reading of the Fed's preferred inflation gauge showed prices increased slightly more than expected in June.
The core Personal Consumption Expenditures (PCE) index, which strips out the cost of food and energy and is closely watched by the Federal Reserve, rose 2.6% over the prior year in June; above economists' estimate of a 2.5% increase and unchanged from the month prior. Still, the print marked the slowest annual increase for core PCE in more than three years.
Core PCE rose 0.2 % from the prior month, in line with Wall Street's expectations for 0.2% and faster than the 0.1% increase seen in May.