May PCE inflation holds at 4.1%, aligning with estimates, while megacap tech declines weigh on the Nasdaq amid AI capex concerns.
US May PCE inflation came in at 4.1%, matching expectations, while Q1 GDP was revised to 2.1%, above the 1.6% estimate. Initial jobless claims totaled 215K, slightly below the 225K forecast, with continuing claims at 1.821M versus 1.800M estimated.
Durable goods orders fell 4.5%, in line with projections, and the Dallas Fed trimmed mean PCE rose to 2.8% from 2.4% prior. The US Treasury sold $44 billion of 7-year notes at a 4.26% yield, while Fed’s Goolsbee noted inflation trends remain unfavorable.
Markets reacted with the S&P 500 holding steady, but the Nasdaq dropped 0.6% as megacap tech stocks slumped. Apple led declines with a 6.4% fall after raising consumer prices to offset memory chip costs. The US dollar weakened, with CAD gaining and JPY lagging, while gold and oil prices rose to $4025 and $72.11, respectively.