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13:34 · 28 October 2022

BREAKING: US500 jumps back above 3,800 pts after PCE reading

US data pack for September was released at 1:30 pm BST today. Attention was mostly on PCE inflation data and it surprised to the downside. Core PCE accelerated from 4.9 to 5.1% YoY, less than 5.2% YoY expected while headline gauge stayed unchanged at 6.2% YoY (exp. 6.3% YoY). Personal income data came in slightly below expectations while spending data showed a small beat. Overall, this data pack should not change much in terms of next week's Fed meeting.

Data pack for September:

  • Headline PCE inflation: 6.2% YoY vs 6.3% YoY expected (6.2% YoY previously)

  • Core PCE inflation: 5.1% YoY vs 5.2% YoY expected (4.9% YoY previously)

  • Personal spending: 0.6% MoM vs 0.4% MoM expected (0.4% MoM previously)

  • Personal income: 0.4% MoM vs 0.5% MoM expected (0.4% MoM previously)

When it comes to market reaction, index futures gained with US500 jumping above 3,800 pts while US dollar weakened.

US500 jumped back above after smaller-than-expected core PCE reading. However, reading should not change the course for the next Fed's meeting. Source: xStation5

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