U.S. stocks have slipped down as the turbulent week continues, with investors responding to the latest release of its personal consumption expenditure index, the main consumer inflation gauge.
summary
- Dow Jones Industrial Average fell 65 points, while S&P 500 and Nasdaq Composite fell 0.4% and 0.5% respectively.
- The Core PCE Inflation Index rose to 2.9% in July, up from 2.6%.
- Bitcoin and Ethereum also slipped as risk assets continued to reduce profits from their recent highest.
Dow Jones Industrial Average fell 65 points to continue its weaknesses seen this week, with the S&P 500 running around 0.4%. Meanwhile, the Tech Heavy Index, a Nasdaq Composite, fell by 0.6%.
The Wall Street outlook follows a months-long smash hit when stocks rallyed to hit highs amid a resilient economy. Despite President Donald Trump’s tariffs and the disruption that initially clashed with the market, risk assets, including crypto, showed significant advantages in gathering at new highs.
But it quickly disappeared as the Federal Reserve’s Jackson Hole Symposium spiked and the major US indexes came from recent peaks. On Friday, investors responded to updates on the Personal Consumption Expense Index, and July readings were heated.
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Stock slips in core PCE data
Department of Commerce data currently available on the blockchain showed that the Federal Reserve’s preferred inflation gauge was stable in July.
However, it suggests that core PCEs, which ignore the volatile food and energy sector, has risen to its highest since February. A PCE headline read shows that prices rose 2.6% in July. This is primarily in line with consensus predictions. Despite this, Core PCE was at 2.9%, the hottest in five months, from 2.8% in June.
The stock recession was also shown in Bitcoin (BTC) and Ethereum (ETH), respectively, hovering around $110,000 and $4,400, respectively.
Despite inflation data, the overall sentiment is bright as Wall Street bets on a Fed rate cut in September. Federal Reserve Chairman Jerome Powell signaled the outlook in his speech at Jackson Hole, with traders stakes that the central bank would take action.
The Dow Jones has been keeping an eye on a 2.2% surge in August, but the S&P 500 is on track due to a 2% rise and more than 6,400 monthly closures. Nasdaq Composite is considering an increase of 2.5% that month. Importantly, analysts untargeted the S&P 500 in 2025 and 2026.
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