#PCEMarketWatch
PCE Inflation Report Update
The Personal Consumption Expenditures (PCE) price index, a key inflation indicator watched by the Federal Reserve, rose at a 2.1% annual rate in April [1]. This rate was below the consensus estimate among economists polled by FactSet [1].
Market Reaction to PCE Report
Following the release of the PCE inflation report, stock futures remained lower. Dow futures were down 0.3%, while S&P 500 and Nasdaq 100 futures were down 0.4% [1]. The market reaction was influenced not only by the inflation report but also by other factors, such as President Trump's accusations against China regarding the trade agreement [1].
Analysis of Core PCE
The core PCE, which excludes the volatile food and energy categories, rose at a 2.5% annual rate, matching the consensus estimate [1]. This measure is closely watched by the Federal Reserve as it provides a clearer picture of underlying inflation trends.
Market Watch Update
The current market watch update indicates that stock futures are lower after the PCE inflation report showed a 2.1% annual rate increase in April, below the consensus estimate. The core PCE rate was in line with expectations at 2.5%.
