PCE index increased by 4.2%v in March as inflation data meets expectations. After expectations, U.S. stocks were up.
PCE data After Market Reaction – Wall Street Stocks Rising
The S&P 500 went up 0.5%, and the NASDAQ Composite also up 0.3 percent. While the Dow Jones is higher by 176 points, or 0.5%, at 10:50 ET (14:50 GMT).
A carefully monitored inflation indicator increased as predicted. Supporting predictions that the Fed will increase interest rates by a further quarter of a percentage point the following week.
PCE Data at a Glance
The PCE index increased 4.2% year over year in March after increasing 5.1% year over year in February. PCE rose 0.1% monthly, less than anticipated. In contrast to estimates for a 4.5% increase, the core PCE, which excludes food and energy costs, increased by 4.6%.
Amazon.com, Inc. (NASDAQ: AMZN) shares were down 3.6%. After the company stated that the present economic situation was affecting cloud computing unit earnings. Which threw doubt on the first Q1’s otherwise strong performance.
The profit announcement coincides with indicators of a faltering economy. A lessen-than-expected 1.1% increase in Q1 gross domestic product on Thursday. Raised concerns that the economy would enter a recession. The Fed is expected to raise rates next week. Then take a break at its meeting in June, according to futures traders.
The Fed will announce the findings of an internal assessment of its oversight of SiVB later today. Silicon Valley Bank failed in March, raising concerns about a wider banking industry spillover. First Republic Bank, Inc. (NYSE: FRC), another local lender, was suspended on Friday after dropping 20%.
