The rally in US stocks hit pause before the bell on Friday as investors marked time ahead of an inflation report seen as crucial to the Federal Reserve’s next decision on interest-rate cuts.

S&P 500 futures (ES=F) were little changed on the heels of ekeing out a third record-high close this week, while Dow Jones Industrial Average futures (YM=F) were similarly flat. Contracts on the tech-heavy Nasdaq 100 (NQ=F) fell 0.2%.

The gauges are still on track for a weekly win as confidence in the economy returned to the market. A solid GDP reading cemented growing conviction that the Fed can nail a “soft landing” as it embarks on a rate-cutting campaign. But investors are still on watch for fresh data as they debate the pace of the easing.

Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards

The August reading of the Personal Consumption Expenditures (PCE) index, the inflation metric favored by the Fed, is seen as crucial to those calculations. While policymakers have shifted their focus to the labor market, they still haven’t met their inflation goal of 2%.

Analysts expect the PCE print to come in at 2.3% year-over-year, down from 2.5% for July, when it’s released at 8:30 am ET. That would support the Fed’s decision to lower rates by 50 basis points last week and provide scope for another jumbo cut in November. But any sign of sticky price pressures could revive worries that policymakers have stepped off the brakes too early.

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.

Read the full article here

Share.

Leave A Reply

Your road to financial

freedom starts here

With our platform as your starting point, you can confidently navigate the path to financial independence and embrace a brighter future.

Registered address:

First Floor, SVG Teachers Credit Union Uptown Building, Kingstown, St. Vincent and the Grenadines

CFDs are complex instruments and have a high risk of loss due to leverage and are not recommended for the general public. Before trading, consider your level of experience, relevant knowledge, and investment objectives and seek financial advice. Vittaverse does not accept clients from OFAC sanctioned jurisdictions. Also, read our legal documents and make sure you fully understand the risks involved before making any trading decision

Exit mobile version