PCE Data Make 'Traders' React? This Is What's Happening In The Financial Market!

<p>&nbsp;US stocks showed a strong opening on Friday, with Wall Street digesting new readings on the Federal Reserve's preferred inflation indicator that could affect interest rate expectations.</p><p><br /></p><p>S&amp;P 500 and Dow Jones Industrial Average stock futures each rose by about 0.7%. Contracts on the tech-heavy Nasdaq 100 led gains of nearly 1%, with all three markers trying to add to Thursday's gains.</p><p><br /></p><p>Stocks returned to strong gains for the month and quarter as they entered the final trading day of September. The main index faces a decline of 3% to 5% for the month, driven by a sharp rise in oil prices and fears that the Fed's high rate strategy means another hike this year.</p><p><br /></p><p><br /></p><p>The bond market also recorded positive readings after comments from Fed officials helped ease rate concerns. The 10-year US Bond market slumped after reaching levels not seen in more than 15 years.</p><p><br /></p><p>Today Traders turn to the focus of Friday's Personal Consumption Expenditures (PCE) data, which is the Fed's preferred inflation indicator. August data showed “core” PCE – which excludes food and energy factors – rose 3.9% this year, the lowest since September 2021 and down from 4.2% in July. The decline is likely to dampen expectations that the Fed will raise interest rates in November.</p><p><br /></p><p>On the other hand, market players also expressed concern about the US government shutdown. This is because this matter can have a significant impact on the economy and the stock market.</p><p><br /></p><p>The US dollar index, which measures the US dollar against six major currencies, traded slightly firmer despite a 0.30% decline at a trading level of 105.597.</p>