Technical Review

Better Inflation News Ignored

Wall Street has been impatiently waiting for better inflation news and the May Personal Consumption Expenditures Index (PCE) delivered. The Core PCE only increased by 0.08% and the Headline was essentially flat (-0.01%). The takeaway values from May 2023 were 0.1% and 0.30% so Headline annual PCE inflation dipped to 2.6% from 2.7% and the Core fell to 2.6% from 2.8%. Rather rallying in response to the good inflation news the S&P 500 fell -0.40% and Treasury bonds dropped by -0.84%....

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