4Monthly core PCE 3.3% release sends futures lower; Snowflake 39% surge
4The monthly personal consumption expenditures (PCE) inflation rate was reported at an overall 3.8% and core 3.3%. S&P futures and Dow futures fell, while Snowflake rose 39% immediately after reporting its results.
The U.S. Department of Commerce's personal consumption expenditures (PCE) price index showed that the overall inflation rate for the month was 4% year over year. Core PCE was 3.8% year over year. The measure is classified as the inflation gauge preferred by the Federal Reserve.3.3The measure is classified as the inflation gauge preferred by the Federal Reserve.
Ahead of the data release, S&P 500 futures and Dow futures fell. Traders appeared to adjust their positions before the release of a key inflation indicator. At the same time, oil prices rebounded.
In corporate earnings, Snowflake's share price rose 39% on a one-day basis after its earnings announcement. The gain was recorded in trading immediately after the earnings release. Short-term volatility was observed in other technology stocks and index futures.
Futu Holdings 1shares rose intraday ahead of its quarterly earnings announcement 20%. The move was attributed to earnings optimism. Stock-specific volatility coincided with the release of Federal Reserve data.
Markets digested interest rate outlooks and corporate earnings at the same time. The PCE figure released that day is classified as an item directly linked to interest rate expectations. Investors repositioned for the short term based on the data and earnings results.
Sources: CNBC Top News,Yahoo Finance,Seeking Alpha Market News
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