Inflation accelerates in Aug., CPI shows
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US headline CPI has come in at 0.4% month-on-month, above the 0.3% consensus, but core CPI has come in at 0.3% as predicted. Read more here.
Thursday's consumer-price index for August included an annual core inflation rate of 3.1%, which has remained above 2% since April 2021. It may take a recession to lower this rate to 2% in the next several years.
MSCI's global stock index advanced on Wednesday, hitting a record high, while Treasury yields touched their lowest level since April after softer-than-expected U.S. inflation data boosted hopes for Federal Reserve interest rate cuts.
As the Federal Reserve cut its federal funds rate, here’s how it ripples through the economy and influences your finances.
Stock market today: S&P 500, Nasdaq rise as Oracle surges, PPI inflation bolsters Fed rate cut hopes
Meanwhile, wholesale inflation unexpectedly declined last month, bolstering the case for the Federal Reserve to cut rates next week. Oracle stunned Wall Street as its CEO said its cloud revenue will skyrocket thanks to a big jump in bookings from the "who's who of AI.
The S&P 500 and the Nasdaq scaled fresh intraday record highs on Wednesday driven by a surge in cloud computing firm Oracle, while cooler-than-expected inflation data kept the U.S. Federal Reserve on track to cut borrowing costs this year.
Economists are split into opposite camps on which is more important for the Fed to battle — slower growth or higher inflation.
After a weak jobs report, the producer and consumer price indices for August could be the next worry for the markets and the Fed.