The PCE index, which is the Fed’s preferred price index, fell to an annual rate of 2.6% in May, in line with market expectations and its lowest level in the last three years. Most forecasts suggest that the Fed may initiate monetary easing between the September and November interest rate decisions, possibly around the time of the US elections.
Yoni Fanning, chief strategist at Mizrahi Tefahot, noted that the lack of monthly change in prices helps moderate inflation to 2.6%. The monthly inflation rate hasn’t been this low since November, with factors like gas prices corrections and medical insurance price increases contributing to overall inflation levels.
Softbank announced its intention to raise a debt of about $1.86 billion to cover existing debt and invest in artificial intelligence development. European stock markets show a mixed trend, with the Dax index rising, the FTSE also gaining, and the French CAC declining. In Asia, markets are trading higher, with the Nikkei, Shanghai Stock Exchange, and Kospi all posting gains.
In the US, futures contracts are trading slightly higher. Nasdaq added 0.3% in the previous session, while Dow Jones and S&P 500 rose 0.1%. Chip stocks saw a decline following Micron Technology’s disappointing report, with Nvidia also falling. Bond yields in the American debt market are rising slightly.
Overall, global markets are responding to various economic indicators and company announcements, with investors closely monitoring trends and developments to make informed decisions.