Last Updated: 4:06 PM EST
Stock indices finished today’s trading session in the green as inflation continues to cool. As a result, the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 1.29%, 1.01%, and 0.55%, respectively.
Core PCE, which is the Fed’s preferred inflation metric, came in at 2.6% year-over-year and 0.2% month-over-month. For reference, economists were expecting 2.7% for the former and 0.2% for the latter. In addition, yearly and monthly headline PCE figures were 2.5% and 0.2%, respectively, compared to estimates of 2.6% and 0.2%.
However, the University of Michigan released its report on consumer inflation expectations over the next five years, and the results came in at 3%, which was as expected and unchanged compared to the previous month. This suggests that consumers are still not fully convinced that inflation will hit the 2% target.
First Published: 2:55 AM EST
U.S. futures inched higher on Friday morning as investors looked forward to the release of U.S. Personal Consumption Expenditures (PCE) data, the Federal Reserve’s preferred inflation gauge, later today. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by about 0.4%, 0.24%, and 0.08%, respectively, at 2:16 a.m. EST, August 30.
The stock market saw a mixed performance on Thursday, with the S&P 500 retreating slightly and the Nasdaq Composite down 0.2%. The downturn was primarily driven by a sharp sell-off in Nvidia (NVDA) shares following the release of its Q2 earnings report. Meanwhile, the Dow Jones climbed 0.6% to close at a new record high.
In major stock market news, Best Buy (BBY) gained 14.1% following the release of a better-than-expected report. Also, Affirm (AFRM) surged over 30% after it surpassed fiscal fourth-quarter estimates and provided upbeat guidance. On the other hand, Dollar General (DG) was down more than 32% after its second-quarter results missed analysts’ expectations.
Traders are now looking forward to today’s PCE data. Experts predict inflation to have grown by 0.2% in July. Interestingly, the data point is pivotal in determining this year’s interest rate cut trajectory. Additionally, the five-year Consumer Inflation Expectations report is scheduled for release today.
Meanwhile, the U.S. 10-year treasury yield was down at the time of writing, floating near 3.865%. At the same time, WTI crude oil futures trended higher, hovering near $76.24 per barrel as of the last check.
Elsewhere, European markets are expected to open mixed today. Investors are looking ahead to key inflation reports from the U.S. and the Eurozone for clues about interest rate cuts.
Asia Pacific Markets Traded Higher on Friday
Asia-Pacific indices traded in the green today as investors celebrated robust U.S. GDP data, released yesterday.
At the time of writing, Hong Kong’s Hang Seng index was up 2.25%. Moreover, China’s Shanghai Composite and Shenzhen Component indices gained 1.46% and 3.42%, respectively. Further, Japan’s Nikkei and Topix indices closed higher by 0.41% and 0.4%, respectively.
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