Pce Inflation

• U.S. stock futures for the S&P 500, Nasdaq 100, and Dow Jones rose on Thursday following a lower close on Wednesday. • The market gain follows the release of the Federal Reserve's preferred inflation gauge, the Core PCE, which showed a monthly ease to 0.1%. • Investors are closely monitoring major tech companies, specifically Meta, Microsoft, and Apple, as key drivers of market momentum.

• US stock futures are trending upward, with the Dow rising over 150 points, the S&P 500 gaining 0.35%, and the Nasdaq jumping 0.61%. • A rally in Microsoft shares is currently offsetting investor anxiety regarding the Federal Reserve's next moves. • Markets are awaiting the release of PCE inflation data, which will provide critical insights into inflation trends, labor conditions, and economic growth.

• The U.S. Personal Consumption Expenditure (PCE) price index for May met expectations, with headline inflation at 4.1% and core inflation at 3.4%. • Consumer spending rose by 0.7%, exceeding the 0.6% forecast, while personal income accelerated sharply by 0.7%, significantly beating the 0.4% consensus estimate. • This resilience in consumer demand and income growth suggests that households can sustain spending despite elevated borrowing costs.

• The Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) report, reached a three-year high in May. • This surge in prices indicates that inflation remains persistent, complicating the central bank's efforts to stabilize the economy. • The data suggests the Fed will likely keep interest rates steady for now, though the possibility of further rate hikes remains on the table if inflation does not dissipate.

The U.S. PCE inflation index reached 3.1% in February 2026 data released March 13, exceeding forecasts and fueling concerns over persistent price pressures. This reading, alongside Brent oil hitting $100, pushed back expectations for Federal Reserve rate cuts into late 2026. Economists note the figure complicates the Fed's dual mandate amid slowing GDP growth. Markets now price in steady rates through mid-year.