In the New York market on the 26th, the dollar rose against major currencies and Treasury yields also increased after US inflation data came in above expectations. Meanwhile, the stock market edged lower ahead of Nvidia's earnings release. The Commerce Department reported that the Personal Consumption Expenditures (PCE) price index for July rose 3.7% year-over-year, exceeding the market forecast of 3.6%. Following this, according to CME FedWatch, the probability of a rate hike at the September FOMC meeting rose to about 40%. The 10-year Treasury yield rose 2.93 basis points to 4.668%. In the stock market, the Dow Jones Industrial Average fell 113.52 points to close at 53,463.88, while the Nasdaq dropped 21.10 points to 26,130.20. Gold futures continued to decline due to stronger rate hike expectations, with the front-month contract falling 0.9% to $4,653.30 per ounce.
PCE inflation above expectations raises rate hike odds, pushing yields up.
