PCE Inflation Increases, What About The Latest Perception Of The ‘Traders’? – Beragampengetahuan

US stock index futures continued to strengthen on Friday, as fresh evidence of progress in inflation raised hopes that the Federal Reserve may cut interest rates later this year despite a squeeze on rising inflation.

The production price index of personal expenditures (PCE) rose 0.3% in March, compared with forecasts of a 0.3% increase by economists interviewed by Reuters. In the 12 months to March, PCE inflation rose 2.7% compared to forecasts of 2.6%.

Excluding the volatile food and energy components, the PCE price index rose 0.3% last month compared to forecasts for a 0.3% increase. Annually, it reached 2.8% compared to the forecast of 2.7%.

Read the Dow Jones index rose 122 points, or 0.32%, the S&P 500 futures rose 46.75 points, or 0.92%, and the Nasdaq 100 futures rose 197 points, or 1.12%.

Traders raised bets that the US Federal Reserve will announce its first interest rate cut of the year in September, after a government report on Friday showed US inflation rose last month in line with economists’ expectations.

Expectations on interest rates showed a probability of around 65% for a rate cut at the US central bank’s mid-September meeting, up from less than 60% before a report that showed the price index for personal expenditure (PCE) rose 0.3% last month from February.