Apple Inc.AAPL
▼ NegativeMonetaryrelevance
Persistent core inflation may lead to Fed rate hikes, pressuring growth stocks like Apple.
Impact on stocks 1
Artificial Intelligence
Apple Inc.The Personal Consumption Expenditures price index rose 0.4% monthly and 4.1% annually in May, the Bureau of Economic Analysis reported, marking the highest annual rate since April 2023. Core PCE, which excludes food and energy, accelerated to 0.3% monthly and 3.4% annually, signaling persistent underlying inflation. Many economists believe headline inflation likely peaked in May as oil prices have since dropped over 30%, but core pressures from healthcare, insurance, and AI-related tech costs may keep inflation elevated. RSM Chief Economist Joseph Bruseulas called the May data stale due to the oil decline, while Navy Federal Credit Union's Heather Long noted the monthly gain was softer than expected but questioned how fast inflation will cool this summer. The Federal Reserve may face a challenging core inflation picture, potentially leading to interest rate hikes later this year.
Apple Inc.Persistent core inflation may lead to Fed rate hikes, pressuring growth stocks like Apple.