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US indexes ended the day lower, despite market excitement over the latest PCE data.
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Both headline and core personal consumption expenditure readings came in 2.6% year-to-year.
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The stock market closed 2024’s first half strongly, with the S&P 500 up nearly 15%.
US indexes slid on Friday after temporarily bounding to new records, as investors celebrated the latest inflationary report.
The personal consumption expenditures price index, an inflation gauge favored by the Federal Reserve, notched its lowest reading of three years. Both core and headline PCE fell to 2.6% year-to-year in May, just under the previous month’s reading.
Personal spending also picked up month-to-month, with real goods spending rebounding from weak April.
“The soft inflation data will build the case that the Fed can start cutting rates in the coming months,” LPL Financial chief…
