Stock market today: Dow gains as Fed's favored inflation gauge cools

Published On Sep 27, 2024, 2:45 PM

Stocks had a mixed day of trading as a significant inflation report indicated cooling price pressures, which could influence future interest rate cuts by the Federal Reserve. The S&P 500 remained near break-even, while the Dow rose, and the tech-heavy Nasdaq dipped slightly. The latest Personal Consumption Expenditures (PCE) index showed the core inflation rate increased by only 0.1% month-over-month, below expectations, leading to increased speculation of a 50 basis point rate cut in the upcoming Fed meeting. Meanwhile, China’s continued stimulus measures have boosted market confidence, particularly lifting luxury and tech stocks, while stocks like Costco faced pressure due to disappointing earnings.

Read full article

Stock Forecasts

QQQView QQQ chart on TradingView

Positive

The Fed's potential interest rate cuts are likely to favor growth and technology stocks, which often benefit from lower rates. Given the positive sentiment surrounding any rate cuts amidst cooling inflation, stocks in the tech sector may see upward movement.

COSTView COST chart on TradingView

Negative

Costco's recent disappointing earnings report suggests short-term weakness in its stock as it missed revenue expectations. The current market sentiment might not favor Costco until it demonstrates stronger financial performance.

BMYView BMY chart on TradingView

Positive

Bristol Myers Squibb received positive news with FDA approval for a schizophrenia drug, which could improve its market standing and result in upward stock movement.

Related News

Here's the inflation breakdown for September 2024 — in one chart

Oct 10, 2024, 10:52 AM

Inflation fell in September as gasoline prices declined and housing inflation moderated, according to the consumer price index.

XLY
QQQ
SPY

Inflation: Consumer price increases in September come in slightly hotter than estimates

Oct 10, 2024, 9:36 AM

September's Consumer Price Index will serve as the latest test of whether inflation will continue to ease as the Federal Reserve debates its next interest rate decision.

XLP
QQQ

Sam's Club sees boost in premium memberships as it keys in on tech innovation

Oct 9, 2024, 6:00 AM

Sam's Club says the number of customer's joining the most premium membership tier has hit a new high. This comes despite another challenging year for consumers continuing to seek value.

COST