On Friday, stocks rebounded after the core PCE, the Federal Reserve’s preferred means of measuring inflation showed price pressures continuing to cool in the US.
Released on Friday, the Personal Consumption Expenditures (PCE) Price Index revealed that its “core” measure, which excludes volatile food and energy readings, was up 4.1% year over year for June, the smallest it has read since September of 2021.
The reading came on the heels of CPI data earlier this month which showed core inflation increasing 4.8% over the previous year. The “headline” reading, which includes both food and energy prices, for both the PCE and the CPI came in at 3% higher than last year.
The markets had been rattled earlier in the day when a Bank of Japan rate shift hit the wires.
In response to the data, the Dow Jones Industrial Average (^DJI) rose 0.5%, lifting over 150 points. The S&P 500 (^GSPC) was up 1%, and the tech-heavy Nasdaq Composite (^IXIC) rose nearly 2% on Thursday after all major gauges closed in the red.
