US August PCE Inflation Cools to 3.4% Annually, Below Forecasts; Equity Futures Jump

U.S. equity futures rose on Wednesday after the Commerce Department reported August PCE inflation slowed more than expected. The headline Personal Consumption Expenditures price index increased 3.4% year-over-year, below the 3.7% consensus, with the prior reading revised down to 3.4% from 3.7%. On a monthly basis, prices rose 0.2%, under the 0.4% estimate. Core PCE, excluding food and energy, rose 3.0% annually, below the 3.3% forecast and revised down from 3.3%. Monthly core PCE increased 0.2%, versus the 0.3% estimate. Nasdaq futures gained 0.48%, S&P 500 futures rose 0.50%, and Dow futures climbed 0.49%. Spot gold advanced 0.62% to $4,207.75 an ounce, while the 2-year Treasury yield fell 4.57 basis points to 4.843%. August personal spending rose 0.9% month-over-month, beating the 0.8% estimate. Personal income grew 0.2%, missing the 0.5% forecast.