Last Updated: 4:21 PM EST
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Stock indices finished today’s trading session in the green after today’s cool inflation data. Indeed, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 0.85%, 1.09%, and 1.18%, respectively.
Core PCE, which is the Fed’s preferred inflation metric, came in at 2.8% year-over-year and 0.1% month-over-month. For reference, economists were expecting 2.9% for the former and 0.2% for the latter. In addition, yearly and monthly headline PCE figures were 2.4% and 0.1%, respectively, compared to estimates of 2.5% and 0.2%.
Furthermore, the University of Michigan released its results on consumer inflation expectations over the next five years. Consumers now expect inflation to be 3%, which was lower than the expected 3.1% and decreased compared to the previous month.
First Published: 3:43 AM EST
U.S. stock futures traded lower on Friday morning as investors awaited the release of November’s Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 0.69%, 0.35%, and 0.45%, respectively, at 3:28 a.m. EST, December 20.
On Thursday, the Dow Jones Industrial Average posted a small gain, breaking its ten-day losing streak. However, the S&P 500 and the Nasdaq Composite both declined, reflecting a cautious investor sentiment due to concerns about persistent inflation.
Recently, Fed Chair Jerome Powell indicated that inflation remains above the central bank’s 2% target, suggesting that the pace of interest rate cuts in 2025 may be slower than previously anticipated.
In major stock market news, Micron (MU) was down 16% after reporting mixed quarterly results and providing a weak outlook. Further, Lamb Weston (LW) declined 20%, following a disappointing earnings report and the announcement of a new CEO.
Moving to the extended trading session, FedEx (FDX) shares surged over 8% following mixed fiscal second-quarter results and its freight division spin-off news.
Regarding today’s PCE report, experts predict that core inflation will rise 0.2% on a monthly basis and 2.9% annually. It should be noted that the data point can provide insights into the interest rate cut trajectory in 2025. Also, the market is awaiting the University of Michigan’s Consumer Sentiment Index, due today.
On the earnings front, several companies such as Carnival (CCL) and Winnebago (WGO) are scheduled to report their quarterly numbers today.
Meanwhile, the U.S. 10-year treasury yield was down, floating near 4.554% at the time of writing. At the same time, WTI crude oil futures are trending lower, hovering near $68.91 per barrel as of the last check.
Elsewhere, European indices opened lower on Friday morning as the U.S. Federal Reserve’s hawkish stance continued to weigh on investor sentiment.
Asia-Pacific Markets Ended Lower on Friday
Asia-Pacific indices traded lower today as investors assessed the Chinese central bank’s decision to leave its one-year and five-year prime lending rates unchanged.
At the same time, Hong Kong’s Hang Seng Index was down 0.05%. Further, Japan’s Nikkei and Topix indices declined by 0.29% and 0.44%, respectively. Also, China’s Shanghai Composite and Shenzhen Component indices fell 0.06% and 0.02%, respectively.
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