Core PCE to Wrap the Week

Equity markets are trending lower to finish out a week that came with a vast slate of earnings and economic data many traders have been waiting for. We saw NVIDIA earnings, GDP, and finished the week today with the Fed’s preferred inflation indicator Core PCE, which came right in line with expectations at 2.9%, which was a slight increase over last month. The Nasdaq is leading the equities lower trading down near 1.4% and the S&P and Russell saw small losses after the S&P hit a new record high this week.

Overall this month, the S&P, Nasdaq, Gold and Silver were able to carve out a new all time high price this month and came off of those levels slightly to finish the week and month out. As it stands now, the market is pricing in a 25-basis point interest rate cut near 85% for the September meeting, so traders will be more concerned about how hawkish or dovish Powell sounds after the report comes out for future rate cuts. Next week, we will get more data on manufacturing, jobs, nonfarm payrolls, and unemployment that could add additional volatility to these markets that have been trending higher as of late.

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