Last updated: 4:08 PM EST
Stock indexes ended the day lower despite signs that inflation is slowing.Nedix), S&P 500 (Spocks), Dow Jones Industrial Average (DJIA) fell 0.54%, 0.41%, and 0.12%, respectively. Indeed, core PCE, the Fed’s preferred inflation measure, came in at 2.6% year-on-year and 0.1% month-on-month. Additionally, the annual and monthly headline PCE numbers were 2.6% and 0%, respectively. All of these measures were in line with expectations and lower than last month’s results.
Additionally, the University of Michigan released the results of a survey on consumer inflation expectations over the next five years: Consumers now expect inflation to be 3%, which is lower than the expected 3.3% and lower than last month.
Looking at consumer sentiment, the result was 68.2, higher than the expected 65.6. However, this is a decrease from last month’s 69.1. Furthermore, consumer expectations were higher than expected, recording 69.6 in June compared to the expected 67.6. This is also an increase from last month’s result of 68.8.
Additionally, the Federal Reserve Bank of Atlanta has updated its latest GDPNow, which provides real-time forecasts of GDP growth. As more economic data is released throughout the quarter, the “nowcast” becomes more accurate. Second-quarter economic growth is now projected to be around 2.2%, lower than the previous forecast of 2.7%.
Today’s data seems to suggest that lower inflation will come at the cost of lower GDP growth, which could ultimately impact corporate earnings growth and stock prices.
First revealed: 2:58 AM ET
U.S. futures were near flat early Friday as investors awaited U.S. personal consumption expenditures (PCE) data due to be released later today. Nasdaq 100 futures (Nedix), S&P 500 (Spocks), Dow Jones Industrial Average (DJIA) were up about 0.45%, 0.3%, and 0.05%, respectively, as of 2:46 a.m. ET on June 28.
Regarding today’s PCE report, experts expect headline inflation to remain flat month-on-month in May, coming in at 2.6% on an annualized basis. It should be noted that this data will be crucial in determining the trajectory of interest rate cuts this year.
In major stock market news, Walgreens Boots AllianceWBA) fell more than 22% in the regular trading session after the company cut its full-year profit outlook.NKEThe stock fell more than 12% after the company reported mixed fourth-quarter results.
Meanwhile, the yield on the 10-year U.S. Treasury note has been declining, hovering around 4.3% as of the time of writing, and WTI crude oil futures have also been declining, hovering around $82.26 per barrel as of the last check.
Meanwhile, European markets are expected to open higher today as investors anticipate the release of key inflation data from several countries, including the US and the euro zone.
Asia Pacific markets rise on Friday
Most Asia-Pacific stock indexes rose today as investors assessed data points on inflation and industrial production in Japan, while traders also focused on a key US inflation indicator.
At the time of writing, Hong Kong’s Hang Seng Index and China’s Shanghai Composite Index are up 0.14% and 0.56%, respectively, while Japan’s Nikkei 225 and TOPIX are up 0.61% and 0.57%, respectively, while China’s Shenzhen Composite Index is down 0.11%.
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