Wall St climbs as cooling inflation tempers Fed rate-hike concerns
SPY•U.S. stocks rose after August PCE inflation came in below estimates, with the Dow up 0.10%, the S&P 500 up 0.43% and the Nasdaq up 0.72%. Annual PCE inflation was 3.4%, versus estimates of 3.7%.
1. Inflation eases rate concerns
Wall Street’s main indexes gained after August’s PCE price index rose 0.3% month over month, below the 0.4% estimate. Annual inflation was 3.4%, compared with estimates of 3.7%. Traders saw about a 35% chance of an October rate hike, down from roughly 45% before the data.
2. Company shares diverge
Boeing rose 0.2% after being selected to build the U.S. Navy’s next-generation stealth fighter under a $20 billion development contract, beating Northrop Grumman, whose shares fell 3.8%. Hewlett Packard Enterprise climbed 4.4% after raising its long-term networking revenue growth forecast and announcing a $1.2 billion deal with Vultr. Moderna dropped 5.8% after Citigroup downgraded it to sell from neutral.
