Market Swings: Inflation Data Bolsters Rate Cut Hopes
Major stock indexes dipped while U.S. Treasury yields slightly increased following U.S. inflation data aligning with economists' predictions. Technology shares, particularly Dell Technologies, led declines. This data supports expectations of a Federal Reserve rate cut in September. The Dow, S&P 500, and Nasdaq witnessed declines.
Major stock indexes experienced a downturn while U.S. Treasury yields rose slightly on Friday. This follows U.S. inflation data that met economists' predictions, keeping the likelihood of a September interest rate cut intact.
The S&P 500 index dropped by 0.7%, notably influenced by a significant decline in technology shares, with Dell Technologies falling over 9%. Meanwhile, U.S. stock index futures reduced earlier losses, and the U.S. dollar index saw minor gains.
The Personal Consumption Expenditures Price Index (PCE) showed a 0.2% rise in July, aligning with the forecast, indicating a stable inflation trend. The Federal Reserve is now expected to implement a rate cut in September, with further reductions anticipated later in the year, bolstered by Fed Chair Jerome Powell's dovish comments.
(With inputs from agencies.)
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