Stock Market Today: Live Updates
- * Dow jones Industrial Average: Climbed 141 points, or 0.3%.
- * Core Personal Consumption Expenditures (PCE) Price Index (September): Annual rate of 2.8%, lower than the Dow Jones estimate of 2.9%.
- * The PCE report is the Fed's final inflation view before their interest rate vote on wednesday.
Here’s a breakdown of the key information from the provided text:
Market Performance (Friday):
* S&P 500: Up 0.3%,about 0.7% off its intraday record.
* Nasdaq Composite: Increased 0.3%.
* Dow jones Industrial Average: Climbed 141 points, or 0.3%.
Economic Data Released:
* Core Personal Consumption Expenditures (PCE) Price Index (September): Annual rate of 2.8%, lower than the Dow Jones estimate of 2.9%. Monthly rise of 0.2% was in line with expectations.
* University of Michigan Consumer Survey (December): Came in higher than expected.
Federal Reserve & Interest Rates:
* The PCE report is the Fed’s final inflation view before their interest rate vote on wednesday.
* Inflation is considered “mild.” Jobs market is now more in focus due to recent signs of weakening.
* Traders are pricing in an 87% chance of a rate cut next Wednesday (much higher than a few weeks ago).
* The target fed funds rate is 3.75%-4%.
Expert Opinion (David Krakauer, Mercer Advisors):
* The data “solidifies what the market’s already been pricing in” – a near certainty of a rate cut next week.
* Continued tame inflation could lead to further rate cuts into early next year.
* He doesn’t believe a rate cut will necessarily be a catalyst for further stock gains.
In essence, the market is reacting positively to inflation data that supports the expectation of a Federal Reserve interest rate cut next week. Though, some analysts believe the expectation of a cut is already built into market prices, and further gains might potentially be limited.