PCE Inflation Data In Line, Bolsters Fed Rate Cut Outlook (Live Coverage)

Inflation Data and Rate Cut Expectations - The core PCE price index rose 0.23% in August, with a 12-month inflation rate increasing to 2.91% from 2.85%, marking the highest level since February but not exceeding expectations [3][7] - Markets are pricing in an 88% probability of a rate cut at the upcoming Oct. 29 meeting, with a 64% chance of a third consecutive cut in December [4][9] Consumer Spending and Economic Indicators - Personal consumption expenditures increased by 0.6%, indicating strong consumer resilience, following an upward revision of Q2 consumer spending [5] - Personal income is projected to rise by 0.3%, while personal consumption expenditures are expected to grow by 0.4% [8] Stock Market Reactions - S&P 500 futures rose by 0.4% after the inflation data, recovering slightly after three consecutive down days [6][10] - Boeing shares rallied due to reports of eased delivery restrictions for the 737 jets, while Tesla's stock climbed following a new high price target from Wedbush [2]