- US stocks edged higher on Monday as investors digested the release of PCE inflation data on Friday.
- The year-over-year PCE price index rose 2.5% in February, in line with expectations.
- The inflation data bodes well for potential interest rate cuts from the Federal Reserve in June.
US stocks edged higher on Monday as investors digested $4 and gear up for the start of the second-quarter.
PCE inflation data was released on Friday when the stock market was closed for Good Friday, so investors are now reacting to the data.
The year-over-year PCE price index rose 2.5% in February, in line with economist expectations, and core PCE, which excludes food and energy prices, rose 2.8% in February, also in line with expectations.
The data $4 based on futures data from the CME. The probability of a 25 basis point interest rate cut at the Fed's June FOMC meeting rose from about 55% before the data to 60% today.
Fundstrat's Tom Lee said in a note to clients over the weekend that the PCE data "gives Powell and Fed more confidence that inflation is falling" faster than consensus and added that it is "good for stocks."
Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Monday:
- S&P 500>$4: 5,259.69, up 0.1%
- Dow Jones Industrial Average>$4: 39,790.78, down 0.1% (22 points)
- Nasdaq Composite>$4: 16,439.16, up 0.4%
Here's what else is going on today:
- $4 that track the stock market amid new record highs.
- $4 given its paltry revenue and sizable losses, BI's Emily Steward writes.
- $4 as retail investors start to get more excited about the stock market.
In commodities, bonds, and crypto: