PCE Personal Consumer Expenditure Data: The Federal Reserve's Preferred Gauge of Inflation
Inflation cooler than expected fueled risk-on in markets, and it's either put someone's trade into losses or validated the position with profits. With a macroeconomic data event with a reputation like PCE, most chart-trading technical analysts will be in no positions and zero exposure with what some institutions even call a flat desk.
With the Nasdaq at the time of writing up around 1% since the release, a risk-on tone has NVIDIA, Apple, Microsoft, Google, and Amazon all up for the day. Gold has sold off since the PCE data, and EUR/USD is down also.
Core PCE (Excluding Food & Energy): Rose 0.2% month-on-month (below the 0.3% consensus) and 3.0% year-on-year (cooler than the expected 3.3%).
Headline PCE: Grew 0.3% month-on-month and 3.4% year-on-year.
Consumer Spending: Increased by 0.9% month-on-month (0.6% in real terms).
Q2 GDP Revision: Real GDP growth for the second quarter was revised upward to 2.2% annualized.
Market Reaction: The softer-than-expected core inflation print combined with solid consumer spending eased market fears of aggressive interest rate hikes, causing Treasury yields and the dollar index to pull back.
Investors and traders look towards NFP non farm pay rolls US labor market data for the next high impact news catalyst .