FX.co ★ US Futures Steady Ahead of PCE Inflation Data

U.S. stock futures experienced minimal movement on Friday, as investors anticipated the release of the latest Personal Consumption Expenditures (PCE) price index. This index, favored by the Federal Reserve for gauging inflation, is expected to provide further insights into the future trajectory of interest rates. On Thursday, the Dow Jones Industrial Average declined by 0.38%, while both the S&P 500 and the Nasdaq Composites saw losses of 0.5%, marking the third consecutive day of declines for all three indices. The pullback in equities followed unexpectedly strong U.S. economic data, which reduced the likelihood of more significant interest rate cuts by the Federal Reserve. Weekly jobless claims decreased to 218,000, indicative of a robust labor market, while the revision of second-quarter GDP growth showed a significant increase to an annualized rate of 3.8%, driven by strong consumer expenditure and business investments. The yield on the 10-year Treasury note rose to a three-week high, exceeding 4.15%, exerting additional pressure on the stock market. Most notably, nine out of eleven S&P sectors recorded losses, with the declines being led by the healthcare, consumer discretionary, and materials sectors.