US stocks rise as cooler PCE inflation data boosts Fed hopes
Major U.S. stock indexes traded higher as a softer-than-expected PCE inflation report increased hopes the Federal Reserve might hold off on further rate hikes. Headline PCE rose 0.3% in August, below forecasts, while core PCE rose 0.2%.
24% Welcome to the home for real-time coverage of markets brought to you reporters. You can share your thoughts with us at Softer Pce Helps Lift Us Stocks, But Sector Leadership Remains Mixed Wall Street's major indexes are trading higher early Wednesday as a cooler-than-expected inflation report boosts hopes the Federal Reserve may be able to stay on the sidelines at its next policy meeting. The latest PCE report, the Fed's preferred inflation measure, came in softer than economists expected. 7% consensus estimate.
Core inflation, which strips out food and energy prices, also offered some relief. 3%. Despite the positive inflation surprise, sector performance is somewhat mixed beneath the surface. 9%.
Communication Services and technology are providing much of the market's support, with both rising more than 1%, and standing out as the strongest-performing sectors. Within tech, software and services are doing much of the heavy lifting, with the group advancing more than 1%. As September draws to a close, the major indexes are headed for very different monthly outcomes. 4%, which would mark a second straight monthly advance.
5% for the month and also headed for its second consecutive gain. The Dow, however, is lagging. Down more than 3% in September, the blue-chip average is on pace to snap a five-month winning streak if current levels hold through the close. m.
EDT. (Terence Gabriel) *** Earlier On Live Markets: Td Cowen Says Ai Promises Hospitals A Margin Cure Click Here Cooler Than Expected Pce Adds Some Steam To Us Stock Futures Click Here A Bullish Inflection Point For Uk Assets? Click Here What To Think About In Q4 Click Here Stocks Poised For Next Leg Higher... If Oil Drops Click Here Stoxx Set For Monthly Fall, But A Steady Quarter Click Here Before The Bell: Set To End The Month On A High Note Click Here A Cruel Quarter For Bonds Click Here AmendedPCE0932026 EarlyTrade0932026 (Terence Gabriel is a Reuters market analyst.
The views expressed are his own)