1. PCE index rose 0.3% monthly; core PCE up 0.3% as well. 2. Headline PCE climbed to 2.6%, exceeding economist estimates. 3. Services prices surged 3.5% compared to last year. 4. Wages showed slow growth at 0.1%, lowest since November. 5. Federal Reserve aims to contain inflation around 2%.
Higher inflation readings may lead to tighter monetary policy, negatively affecting S&P 500 performance. Previous instances of similar trends resulted in market declines.
Rising inflation pressures affect consumer spending, investments, and Fed's interest policy, all crucial to the S&P 500.
Markets typically react promptly to inflation data; expectations set by the Fed can lead to immediate volatility. Short-term fluctuations have historically followed similar inflation announcements.