The Federal Reserve's favored inflation measure, the PCE price index, rose less than anticipated in August, indicating headway in its battle against inflation. The core PCE, which excludes food and energy, increased by 0.1% for the month, marking the smallest monthly rise since November 2020. Consumer spending also saw a decrease from the previous month. The central bank has been aggressively raising interest rates since March 2022 to counter inflation, with market speculations suggesting a pause in further hikes. However, some Fed officials anticipate interest rates to remain high for a prolonged duration.
The Dow Jones Industrial Average and S&P 500 declined on Friday due to concerns about a potential U.S. government shutdown and despite positive early-session responses to data suggesting easing inflation. For September, the market is anticipated to see significant losses, marking one of the most challenging months this year.
In terms of stock movers, Nike surged by 7% after reporting first-quarter profits that surpassed expectations and shared a drop of 10% in its inventories. In the same sector, Foot Locker increased by 1.7%, Under Armour by 3.7%, and On Holding by 5.8%. Ford and General Motors dropped by 1.6% and 1.2% respectively due to the United Auto Workers union's decision to expand its strike, but Stellantis declined by just 1.1% because of progressive negotiations. Walgreens Boots Alliance saw a 5.1% boost in response to rumors of a potential new CEO. Blue Apron shares rocketed by 134% upon its acquisition announcement by Wonder Group. Carnival shares fell by 7.7% after forecasting a wider loss for its fiscal Q4, despite positive fiscal Q3 results. Brinker International increased by 3.1% after an upgrade by Stifel, while Ball also gained after an upgrade from Jefferies. Bumble enjoyed a 2.5% increase due to an upgrade from Loop Capital. Lastly, Tesla went up slightly by 0.2% despite facing a lawsuit from the Equal Employment Opportunity Commission and a revised sales estimate by Citi.
