The Fed’s preferred inflation metric matches economists’ estimates – US Market Wrap

Wall Street traders who were expecting another disappointing inflation report received some relief when the Federal Reserve’s preferred price gauge met expectations.

Stocks closed at all-time highs, with the personal consumption expenditures index adding to expectations that the Fed will be able to cut rates as early as June. While the PCE remained above the central bank’s 2% target, confirming officials’ wait-and-see strategy, the data helped allay fears of a more significant inflation increase.

In 2024, the S&P 500 set a new high, winning for the fourth consecutive month. The Nasdaq 100 climbed nearly 1%, with Nvidia leading the way in megacaps. Apple briefly fell below $180 for key technical support. Advanced Micro Devices’ market capitalization exceeded $300 billion. Treasury 10-year yields fell two basis points, to 4.25%. Bitcoin hovered around $62,000.