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Inflation posts biggest rise in four months, PCE shows. Tariffs may be filtering into prices. - MarketWatch

1. PCE index rose 0.3%, sparking inflation concerns for the Fed. 2. 12-month inflation climbed to 2.6%, moving further from the Fed's 2% goal. 3. Fed officials await clearer economic impacts before considering interest rate cuts. 4. Two Fed governors dissented, favoring a rate cut for the first time since 1993. 5. DJIA fell slightly amid inflation news while S&P 500 showed gains.

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FAQ

Why Bearish?

Rising inflation measures can lead to delayed Fed rate cuts, negatively impacting market sentiment, as seen during previous inflation spikes that prompted market sell-offs.

How important is it?

The article's focus on inflation metrics and Fed policy directly influences investor behavior and sentiment towards DJIA components.

Why Short Term?

Immediate market reactions to inflation data suggest a potential short-term adjustment in DJIA pricing, especially leading up to key Fed announcements.

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