The Dow Jones Industrial Average was nearly flat today, with investors holding back on trading while awaiting Nvidia's earnings and a speech by Federal Reserve Chair Kevin Waller at the Jackson Hole symposium, which will mark his first address at this venue. The market was pressured by a higher-than-expected PCE index, which could prompt the Fed to accelerate interest rate hikes in October. However, the Dow edged up 12.67 points, or 0.02%, to 53,590.07. Meanwhile, the FedWatch Tool indicated that investors assign a 54.7% probability that the Fed will raise rates by at least 0.25% in October, up from 46.4% last week. On the data front, the U.S. Commerce Department reported that the overall PCE index rose 3.7% in July year-over-year, above the expected 3.6%, while core PCE increased 3.3%, in line with forecasts.
Higher PCE and expected rate hike in October push policy rate up.
Higher PCE and expected rate hike in October push yields up.
