1. PCE index rose 0.1% monthly, 2.3% annually in May. 2. Core PCE increased by 0.2% monthly and 2.7% annually. 3. Federal Reserve monitors these figures to manage inflation. 4. Inflation remains above Fed's long-term target of 2%. 5. Tariff-induced inflation may impact prices this summer.
Persistently high inflation could lead the Fed to increase interest rates, negatively affecting equities historically. For instance, during previous rate hikes, S&P 500 experienced volatility and downward pressure.
The article covers inflation metrics that directly influence central bank policies impacting the S&P 500. Such economic indicators can sway investor sentiment and market movements significantly.
The immediate market reaction is likely focused on inflation data and Fed responses. Historical data shows that inflation releases can cause short-term adjustments in the S&P 500.