1. PCE index rose 0.3% in January, inflation still an issue. 2. 12-month inflation rate slightly decreased to 2.5%. 3. Federal Reserve maintains focus on stubborn inflation trends. 4. Potential tariffs could raise costs for imported goods. 5. Wall Street anticipates slower wage growth in February.
The PCE index data shows minor inflation concerns, which the market might not react to strongly. Historical trends indicate similar market reactions to steady inflation readings, especially when the Fed is maintaining a cautious stance.
Inflation indicators affect Fed policy, disturbing equities and altering investor sentiments significantly.
Immediate impacts will likely be observed around the upcoming employment report, influencing DJIA based on employment trends.