VIEW No surprises from US PCE inflation to alter Fed easing path
August 30, 2024
Linea Mercati Interview 8/30/24
September 3, 2024Wall Street opened higher Friday, optimistic for the last trading day of the month after the publication of a new inflation indicator showing a softening of prices and good corporate results.
“A series of results and forecasts have, overall, been well received,” explained Patrick O’Hare, of Briefing.com, in a note.
Among them, the designer of computer chips Marvell Technology (+7.87%), less known than the big names in semiconductors: its results surpassed the market projections, thanks to the demand for artificial intelligence (AI).
Dell (+2.64%) also reported figures higher than analysts’ forecasts, and raised its annual objectives.
Initially known for its personal computers, the group of Round Rock (Texas) has transformed itself in recent years to the point of becoming today a major supplier of servers calibrated for AI.
The New York stock market even accelerated after the publication of the PCE price index, considered by the American central bank (Fed) as the most relevant inflation indicator.
It came out at 2.5% over one year in July, the same level as the previous month. Excluding food and energy, it reached 2.6%, less than the 2.7% announced by economists.
“This shows that inflation is going in the right direction,” commented Peter Cardillo, of Spartan Capital. “This is good news for the Fed, which will lower its rates in September.”
