#PCEMarketWatch
The PCE (Personal Consumption Expenditures) price index data for May 2025 is a key indicator for the market. According to the report released on May 30, headline PCE for April rose by 2.7% year-over-year, while Core PCE (which excludes food and energy) increased by 2.8%. These figures also show month-over-month increases, indicating continued upward pressure.
Markets are closely watching how the Federal Reserve (Fed) will respond in terms of monetary policy. While Core PCE remains above the Fed’s 2% inflation target, the recent trend suggests a slight cooling, which raises hopes that the Fed might consider cutting interest rates cautiously.
In response, both the S&P 500 and Nasdaq edged higher, reflecting a mix of investor uncertainty and optimism. Investors are now building expectations for medium- to long-term financial moves based on this inflation data.
