Reported 12 months ago
On June 28, 2024, at 9:58 am at the New York Stock Exchange, the Federal Reserve's most closely watched inflation gauge, the U.S. Personal Consumption Expenditures Price Index (PCE), for May hit a three-year low as expected. As inflation approaches the Fed's desired 2% range, investors' expectations of a rate cut rise, leading to an opening increase in the U.S. stock market. The Core PCE, excluding volatile items like energy and food prices, showed a 0.1% monthly increase and a 2.6% annual increase in May, inching closer to the Fed's 2% inflation target. The positive data prompted the Dow to rise by 94 points or 0.24%, the S&P 500 by 0.36%, and the Nasdaq Composite Index by 0.42%. Mary Daly, the President of the Federal Reserve Bank of San Francisco, stated that the evidence suggests monetary policy is working and inflation is cooling, providing relief to businesses and the general public struggling with high inflation. The Fed kept rates at a high level in its recent rate decision meeting but investors now anticipate rate cuts starting in September, with expectations of two cuts.
Source: YAHOO