Overview
- The U.S. PCE price index rose 0.3% in September, matching expectations for the Fed’s preferred inflation gauge.
- Futures imply about an 87% chance of a 25-basis-point cut on December 10, which would be the third consecutive reduction.
- Weekly initial jobless claims fell to 191,000, the lowest in nearly two years, complicating the growth and inflation picture.
- Major indexes were modestly higher in early trading after a mixed prior close, with the Dow down 0.07%, the S&P 500 up 0.11% and the Nasdaq up 0.22%.
- Investors are also watching the University of Michigan’s preliminary December consumer sentiment and inflation expectations for additional guidance before the Fed meeting.