The Dow Jones Industrial Average (DJIA) hovered near 39,000.00 as investors awaited signals of potential rate cuts. US Personal Consumption Expenditure Price Index (PCE) inflation figures met expectations, leading to a brief rally to 39,440.00 before equities fell back as the outlook for rate cuts from the Federal Reserve (Fed) remained unchanged.
Core PCE Price Index inflation in May eased slightly to 2.6% YoY, still above the Fed’s 2% target. Despite this, there is little pressure for immediate rate cuts. Rate markets now suggest a 66% chance of a quarter-point cut by the Fed on September 18.
US Personal Income rose 0.5% MoM, exceeding forecasts, while Personal Spending only increased by 0.2%. The University of Michigan Consumer Sentiment Survey rebounded to 68.2, with inflation expectations slightly lower but still above Fed targets.
The Dow Jones saw mixed performance on Friday, with Salesforce Inc. gaining while Nike Inc. faced significant losses. Technical outlook shows the index trading near 39,000.00, above the 50-day Exponential Moving Average.
Overall, the Dow Jones remains volatile, with potential for further fluctuations in the near term. Investors are closely monitoring inflation data and Fed actions for market direction.