US core PCE inflation, known as the Federal Reserve’s favorite measure, came in at 4.1 percent – lower than the 4.2 percent expected. The level is now down to its lowest level since September 2021, prompting US stock markets to cheer.
Some interpret that as the Fed’s rate hike this week could be the last for the year – others warn it’s too early to claim victory.
The broad S&P 500 index rose 1 percent, the Dow Jones industrial index increased 0.5 percent, while the technology-heavy Nasdaq composite index closed at a whopping 1.9 percent plus.
Facebook’s ownership company Meta and electric car company Tesla both closed at over 4 percent. Amazon and Netflix also had a strong day with both rising over 3 percent.
Another winner for the day was chipmaker Intel, which rose over 6.7 percent after the company reported better-than-expected second-quarter results.
Among the losers was Ford Motor, which fell 3.6 percent, despite the automaker’s report beating many expectations. However, the company announced that their conversion to electric vehicles is taking longer than expected due to increased costs.