Positive Trend in Dow Jones Index Following Lowest Core PCE in 2 Years
September 29, 2023
In a positive turn of events for investors, the Dow Jones Index soared by over 100 points today after the United States unveiled the lowest price index for basic personal consumption expenditure (Core PCE) in 2 years. This revelation has eased concerns over inflation and potential interest rate hikes from the Federal Reserve (Fed).
As of 8:33 pm Thai time, the Dow Jones Industrial Average reached an impressive 33,829.33 points, experiencing a jump of 162.99 points or 0.48%. Contributing to this positive momentum, the market also welcomed the reduction in yields on US government bonds subsequent to the release of today’s inflation figures.
The US Department of Commerce disclosed that the PCE Main Price Index, encompassing food and energy categories, experienced a year-on-year increase of 3.5% in August. This falls in line with analysts’ expectations, matching the recorded figure of 3.4% in July.
On a monthly basis, the General PCE Index witnessed a rise of 0.4% in August, slightly underperforming analysts’ projected rate of 0.5% but still an improvement from July’s 0.2%.
Focusing on the Core SNP Index (Core SNP), an inflation gauge of great importance to the Federal Reserve (Fed) that excludes food and energy categories, it saw a year-on-year rise of 3.9% in August. This marks the lowest level in two years, aligning precisely with the predictions made by analysts in July, which anticipated a growth rate of 4.3%.
Similarly, on a monthly basis, the core PCE index demonstrated a modest increase of 0.1%, falling slightly short of analysts’ expected growth rate of 0.2% as observed in July.
Renowned for its ability to identify shifts in consumer behavior, the PCE index serves as an extensive measurement of inflation, covering a broader range of goods and services compared to the Consumer Price Index (CPI).
Furthermore, investors will closely monitor the progress of Congress in passing an interim budget. A failure to reach an agreement by September 30 could result in a government agency shutdown or closure on October 1.
Reporters reported that Today (September 29, 2023), the Dow Jones Index rose more than 100 points after the United States revealed that the price index for basic personal consumption expenditure (Core PCE) was the lowest in 2 years, causing investors to relax over concerns about inflation. and an increase in interest rates from the Federal Reserve (Fed) As of 8:33 pm Thai time, the Dow Jones Industrial Average was 33,829.33 points, plus 162.99 points or 0.48% In addition, the market received positive factors from the reduction in interest rates Yields on US government bonds Following the release of inflation figures today
The US Department of Commerce revealed that the PCE Main Price Index, which includes food and energy categories, increased 3.5% in August year over year. In line with analyst expectations of 3.4% in July.
On a monthly basis, the General PCE Index rose 0.4% in August, below analysts’ expectations of 0.5% from 0.2% in July.
In terms of the Core SNP Index (Core SNP), which does not include food and energy categories. And it is a measure of inflation that the Federal Reserve (Fed) attaches importance to, rising 3.9% in August year on year. This is the lowest level in two years and in line with analysts’ expectations of 4.3% in July.
On a monthly basis, the core PCE index rose 0.1%, below analysts’ expectations of 0.2% from 0.2% in July.
The PCE index is considered to be a measure of inflation which can detect changes in consumer behaviour. and covers the prices of goods and services more broadly than the Consumer Price Index (CPI).
Investors will also keep an eye on Congress’s progress in passing an interim budget. If an agreement cannot be reached by September 30, it will lead to the shutdown of US government agencies. or close on October 1
#Dow #Jones #increases #points #response #Core #SNP #lowest #years
