Stock market today: US futures point higher as Fed's favored inflation gauge cools
09/27/2024 19:49
The market is looking to August's PCE print to calibrate whether another jumbo cut is coming.
US stock futures pointed toward gains as investors digested an inflation report seen as crucial to the Federal Reserve's next decision on interest-rate cuts.
S&P 500 futures (ES=F) were up 0.1%, on the heels of ekeing out a third record-high close this week. Dow Jones Industrial Average futures (YM=F) and those on the tech-heavy Nasdaq 100 (NQ=F) were also up around 0.1%.
The August reading of the Personal Consumption Expenditures (PCE) index, the inflation metric favored by the Fed, showed continued cooling in price pressures. The "core" PCE index, which is most closely watched by the Fed, rose 0.1% month over month, lower than Wall Street forecasts.
The gauges are track for a weekly win as confidence in the economy returned to the market. A solid GDP reading, combined with continued cooling in inflation, has cemented growing conviction that the Fed can nail a "soft landing" as it embarks on a rate-cutting campaign.
Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards
Elsewhere, China added to its stream of stimulus measures, boosting markets once again. Mainland stocks scored their biggest weekly win since 2008, and luxury stocks are set for their best week in years as hopes for Chinese demand rise. Meanwhile, shares of Alibaba (BABA, 9988.HK), JD.com (JD, 9618.HK) and Meituan (3690.HK, MPNGY) surged amid the buying spree.
In other individual stock moves, Costco (COST) stock slipped in premarket trading after wholesale giant's revenue disappointed Wall Street.
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Fed's preferred inflation gauge shows prices increased less than Wall Street expected in August
The latest reading of the Fed's preferred inflation gauge showed prices increased at a slower pace than expected on a monthly basis in August.
The core Personal Consumption Expenditures (PCE) index, which strips out the cost of food and energy and is closely watched by the Federal Reserve, rose 0.1 % from the prior month during August, below Wall Street's expectations for 0.2% and the 0.2% reading seen in July.
Over the prior year, prices rose 2.7% in August, matching Wall Street's expectations and coming in higher than 2.6% seen in July.