US Markets On 29th Feb: Evaluating Market Sentiment Post-PCE Price Index Release
US Markets Updates, 29 Feb 2024: The US stock markets opened higher on Thursday after the much-awaited PCE price index data came in line with expectations and kept open the possibility of summer rate cuts.
The Dow Jones Industrial Average (DJIA) opened higher by 64.73 points at 39013.75, while the S&P 500 index made a positive opening of 15.6 points and opened at 5085.36. The Nasdaq Composite index opened higher by 111.6 points at 16059.34.
US Markets Live Updates Today
At 12.20 p.m EDT, Dow Jones turned negative soon after opening and is trading slightly lower by 72.86 points or 0.19 percent at the 38876.16 level while the S&P 500 is trading positive, up by 6.64 points or 0.13 percent at 5076.40 levels. The tech-heavy Nasdaq Composite trimmed most of its early gains but is trading higher by 57.74 points or 0.36 percent at 16005.48 levels.
US Market News
The US stock market indexes are trading mixed, after the release of the personal consumption expenditures (PCE) price index data that rose 0.3% in January compared to December, and a 2.4% increase year-over-year, in line with economists’ forecasts. Meanwhile, the core PCE price index, the Federal Reserve’s preferred inflation gauge, rose by 0.4% for the month and 2.8% compared to the same period last year.
The much-awaited PCE price index data has slightly relieved the investors, who were worried that inflation would likely reaccelerate and the Fed would keep higher rates for a longer time. Investor’s sentiments got further boosted after Atlanta Fed President Raphael Bostic said on Thursday, that he still expects the central bank to start lowering interest rates this summer despite elevated inflation readings.
According to the CME FedWatch tool, the probability of rate cuts in June is showing at 65%. The 10-year Treasury yields eased to 4.231% from 4.266% of the previous close after the PCE price index data.
Meanwhile, the pending home sales unexpectedly fell in January amid fluctuations in mortgage rates. The pending sales decline 4.9% in January, significantly lower than the estimation of a 2% rise according to the Dow Jones consensus. The weekly jobless claims jumped to 215,000, an increase of 13,000 from the previous week’s revised level of 202,000.
US Stocks In News
The share price of Snowflake fell 20% after the company announced disappointing product revenue guidance and the news of the retirement of its CEO. The shares of Okta jumped over 20% after reporting strong quarterly results.
Semiconductor shares are trading higher today, The VanEck Semiconductor ETF (SMH) jumped 1.4%. Nvidia shares the top holdings in SMH gaining 1.7%. The shares of AMD jumped more than 5%
Crude Oil Prices
On Thursday, oil prices are trading slightly higher as traders digested U.S. inflation data and reacted to a substantial increase in U.S. crude stocks, which heightened worries about demand in the world’s largest economy.
The US WTI crude trades slightly higher by 0.87% at $79.23 per barrel while London-based Brent crude oil is up by 0.79% at $82.80 per barrel.
Also, read – Global Stock Market Highlights: Weekly Analysis (Feb 19-23)
Stock Market Prediction Next Week (26 Feb- 1 March 2024)
US Markets at Close
The US stock market indexes ended higher on Thursday, with the Nasdaq closing at a record high for the first time since 2021, due to a surge in tech stocks after a PCE price index report that met expectations, fueling optimism for potential rate cuts in June.
The Dow Jones Industrial Average (DJIA) closed higher by 47.37 points or 0.12% and ended at 38996.39, while the S&P 500 index gained 26.51 points or 0.52% and settled at 5096.27. The tech-heavy Nasdaq composite index was up by 144.18 points or 0.90% and finished at 16091.92.
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