- PCE reading for April: 2.1% YoY (expectations: 2.2% Yoy: previously: 2.3% YoY)
- PCE monthly: 0.1% MoM (expectations: 0.1% MoM; previously: 0.0% MoM)
- PCE Core: 2.5% YoY (expectations: 2.5% YoY; previously: 2.6% YoY)
- PCE Core monthly: 0.1% MoM (expectations: 0.1% Mom: previously: 0,0% MoM)
- Personal Income: 0.8% MoM (expectations: 0.3% Mom; previously: 0.5% MoM)
- Personal Spending: 0.2% MoM (expectations: 0.2% MoM; previously: 0.7% MoM)
US inflation data came in slightly below expectations, indicating a somewhat lower headline annual dynamic. Core inflation fell minimally but remains above the inflation target. This is a key measure of inflation from the Fed's perspective. Nevertheless, it is expected that tariffs may contribute to PCE inflation remaining above expectations in the coming months. Americans' incomes are quite high, growing much stronger than expected, but spending is growing slower than a month ago, in line with expectations. This shows that the American consumer is cautious and may indicate a limitation of consumption in GDP.
USD remains stable after the reading and US500 rebounded slightly after a big drop related to the Trump announcement about China.
US OPEN: Falling Oil Prices and Dip-Buying Fuel Rebound as Nvidia falls
Market Wrap: Strong Banking Sector, Sharp Drop in Oil
Economic Calendar: Nvidia at the Center of a Spying Scandal; Oil Prices Fall After Trump's Remarks📆
Morning Wrap: Taiwan and Asia Are Halting the Chip Crash Despite the Nvidia Espionage Scandal 💡