Last Updated: 4:05 PM EST
Stock indices finished today’s trading session in the green. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 1.62%, 1.59%, and 1.39%, respectively.
Earlier today, the U.S. Commerce Department reported a 0.3% increase in the core PCE Price Index for January, which met expectations but was slightly higher than December’s 0.2% rise. This index, which excludes food and energy prices, is the Federal Reserve’s preferred measure of inflation. The year-over-year increase of 2.6% matched expectations and slowed from December’s 2.9% rate, suggesting that inflation may not be heating up again.
Despite this positive sign, consumers are still concerned about the potential for price increases due to tariffs. Two recent surveys showed that consumers expect inflation to rise in the coming year. Indeed, the Conference Board reported that year-ahead inflation expectations increased to 6% in February, up from 5.2% in January. Similarly, the University of Michigan’s consumer sentiment survey showed that year-ahead inflation expectations rose to 4.3% – a full percentage point increase. These concerns highlight how the uncertainty around inflation continues to linger.
In other economic news, personal income jumped by 0.9% in January, which beat expectations due to increases in social security and dividend payments. However, personal spending slipped by 0.2% and missed expectations. This led to a surge in the personal saving rate to 4.6% in January, which was up from 3.5% in December.
First Published: 3:49 AM EST
U.S. stock futures were steady on Friday morning, as investors awaited the release of the key Personal Consumption Expenditures (PCE) price index report. This report, a key indicator of inflation closely monitored by the Federal Reserve, might influence market sentiment. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 0.28%, 0.19%, and 0.26%, respectively, at 3:42 a.m. EST, February 28.
In Thursday’s trading session, all major indices closed in the red. The Dow Jones and the S&P 500 both hit six-week lows and fell by 0.45% and 1.59%, respectively. Also, the Nasdaq Composite (NDAQ) suffered the most, declining 2.78% to a nearly four-month low.
Several factors impacted Investor sentiment, such as renewed trade concerns due to President Trump’s tariff proposals that raised concerns about the impact on global economic growth, and an 8.5% drop in Nvidia (NVDA) stock following its Q4 earnings report.
It is worth highlighting that today’s trading session would mark the end of a challenging month. The tech-heavy Nasdaq Composite is down 5.5% so far this month. Further, the S&P 500 and the Dow Jones have also witnessed losses of nearly 3% for the month. Market volatility can be attributed to a lack of clarity regarding tariffs, persistent inflation, and weak consumer spending.
Friday’s trading session will be heavily influenced by the release of the January PCE price index data. Economists anticipate a 0.3% monthly increase and a 2.5% annual rise in the overall PCE, with core PCE expected to show similar growth.
Meanwhile, the U.S. 10-year treasury yield was down, floating near 4.244%. Simultaneously, WTI crude oil futures are trending lower, hovering near $69.67 per barrel as of the last check.
Elsewhere, European indices opened lower on Friday on Trump’s renewed threats to impose tariffs on the EU.
Asia-Pacific Markets Ended Lower on Friday
Asia-Pacific indices were in the red today after Trump confirmed that tariffs on imports from China, Mexico, and Canada will be imposed on March 4.
Notably, Hong Kong’s Hang Seng Index was down 3.28%. Further, China’s Shanghai Composite and Shenzhen Component indices declined 1.98% and 2.89%, respectively. At the same time, Japan’s Nikkei and Topix indices closed lower by 2.88% and 1.98%, respectively.
Interested in more economic insights? Tune in to our LIVE webinar.