The Dow Jones (DJIA) is set to open Thursday in the red following an inflation update from the Bureau of Economic Analysis (BEA).
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Forget margin or options. Here's how the pros trade QQQIn February, the Personal Consumption Expenditures (PCE) Index rose 0.4%, unchanged from January and matching the consensus estimate. On an annual basis, PCE increased by 2.8% compared to 2.8% in the prior month and was also in line with the estimate.
Core PCE Holds at 3% ahead of U.S.-Iran War
Core PCE, which excludes volatile food and energy prices, notched a monthly increase of 0.4% and a year-over-year jump of 3.0%. Both figures matched their respective estimates. PCE tracks changes in the prices consumers pay for goods and services over time, while core PCE is the Fed’s preferred gauge of inflation.
The data points show that inflation remained elevated ahead of the U.S.-Iran war, which has raised oil prices and stoked concerns about even higher prices. “Even before the war in Iran, the Fed’s favorite inflation gauge was already at 3% — well above the 2% target,” said Navy Federal Credit Union Chief Economist Heather Long. “It’s likely to go higher this spring.”