Wall Street: opens higher (S&P +0.3 per cent) following a slowdown in PCE inflation
(Il Sole 24 Ore Radiocor) - Wall Street opened higher for the final trading session of September and the third quarter, following the release of new US economic data showing a slowdown in inflation last month, which pushed down Treasury yields. The Personal Consumption Expenditure (PCE) price index for August rose by 3.4 per cent year-on-year, down from 3.7 per cent the previous month. Economists had expected inflation to remain stable at 3.7 per cent. Even more encouraging was the ‘core’ PCE index – excluding food and energy – which rose by 3 per cent year-on-year, down from 3.3 per cent the previous month and below economists’ forecasts (+3.3 per cent). The CME Group’s FedWatch Tool now shows that market participants see a 49 per cent probability of a quarter-point interest rate rise next month; on Monday, that figure stood at 71 per cent. At the start of trading, the Dow Jones is up 64.68 points (+0.13 per cent), the S&P 500 is up 22.97 points (+0.30 per cent), and the Nasdaq is up 121.60 points (+0.45 per cent). On a monthly basis, the S&P 500 and the Dow Jones are down, whilst the Nasdaq is up by over 1 per cent. On a quarterly basis, the S&P 500 and the Nasdaq are up by 2 per cent, whilst the Dow Jones is down by almost 2 per cent. WTI crude oil on the NYMEX rose by 2.06 per cent to $91.22 per barrel.
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