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S&P 500
Benzinga
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Nasdaq Down 100 Points; Federal Reserve's Favorite Inflation Gauge Increases More Than Expected

1. U.S. stocks including S&P 500 traded lower this morning. 2. PCE price index increased by 2.5% year-over-year. 3. Personal income growth accelerated to 0.8%, exceeding expectations. 4. Consumer discretionary shares fell by 1.4%, indicating sector weakness. 5. Inflation data complicates expectations for interest rate cuts.

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FAQ

Why Bearish?

The ongoing inflation concern could deter investor confidence, causing S&P 500 declines, reminiscent of past rate hike cycles where stocks suffered amidst inflationary pressures.

How important is it?

Given the direct influence of inflation on interest rates and hence market valuations, this news is significant for S&P 500 outlook.

Why Short Term?

Immediate reaction to inflation data often affects market sentiment, as seen in previous months during earnings season.

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