April PCE data showed core inflation at 3.4% y-o-y, reinforcing concerns over persistent price pressures and Fed policy.
US personal consumption expenditures inflation accelerated in April, with the core PCE index rising 3.4% year-over-year, matching expectations. The headline figure climbed above 4%, signaling sustained price pressures amid a broader tech sector decline.
The data aligns with recent trends, as inflation remains elevated above the Federal Reserve’s 2% target. Markets had anticipated the print, but the confirmation of sticky inflation weighed on sentiment, particularly in high-growth tech stocks.
Equities extended losses following the release, with Nasdaq futures pointing to further declines as investors reassessed the Fed’s rate-cut timeline.