US Markets Reel as Core PCE Inflation Surges
US stocks are taking a hit this week following the latest core Personal Consumption expenditures (PCE) data. The Dow Jones dropped by 65 points, while the S&P 500 and Nasdaq fell 0.4% and 0.5%, respectively.
The July core PCE jumped to 2.9%, marking its biggest rise since February. This key inflation measure excludes food and energy prices,making it a favorite for the Federal Reserve. While the broader PCE came to 2.6%, matching forecasts, the core figure sparked concerns about higher living costs.
This decline comes after a strong period for US markets.Despite initial worries over President Trump’s tariffs, stocks had soared to new heights, fueled by a robust economy.Cryptocurrencies like Bitcoin and ethereum also gained momentum but are now retreating.
- Dow Jones down by 65 points
- S&P 500 and Nasdaq drop 0.4% and 0.5%
- July core PCE rises to 2.9%
- Bitcoin and Ethereum prices decline
Federal Reserve Chair Jerome Powell’s comments at the Jackson Hole event hinted at potential rate cuts, boosting investor confidence. Analysts predict the S&P 500 could climb further in 2025 and 2026.
Despite short-term setbacks, market sentiment remains positive, looking ahead to possible Fed action and optimistic economic projections.
