US stock futures were volatile on Friday morning ahead of the long weekend.
Futures contracts linked to the S&P 500 Index (^ The Salafist Group for Preaching and Combat(down 0.1%, while futures contracts on the Dow Jones Industrial Average fell)^ DJI) hovering below the flat line. Contracts for the Nasdaq Technology Heavy Composite (^ ix) were 0.2% lower.
US stock and bond markets will be closed on Monday, December 26, in observance of Christmas Day. Bond markets will close an hour earlier than usual on Friday at 2pm ET.
PCE Core Price Index – The Fed’s preferred inflation measure – rose in 5.5% annualized in November And 0.1% from the previous month, on par with consensus estimates of economists surveyed by Bloomberg. Calculate the mean sign of the readings 6.1% and 0.3%, respectively, in October.
Core personal consumption expenditures, which exclude the volatile food and energy components, rose 4.7% on the year and 0.2% on the month.
Investors will also get reads on the latest University of Michigan consumer sentiment survey and new home sales.
After the Fed Final policy decision for 2022 Last week, strategists noted that the most surprising data among economic forecasts from officials was an upward revision of their core personal consumption expenditures forecast to 3.5% from a prior 3.1% at the end of 2023. This signals to many analysts that the Fed will need to maintain on rates at a high final rate through 2023.
“We expect the Fed to revise its forecasts as soon as possible in March, although progress will be slow at first; policymakers seem to have been hurt by the experience of the last year and a half, and they will want to make sure that they are safe,” said Ian Shepherdson, chief economist at Pantheon. On a note: “They’re not cutting their numbers prematurely.” “The markets won’t wait.”
Friday’s moves come after a Previous rough trading day That saw the S&P, Dow, and Nasdaq lose 1.4%, 1%, and 2.2%, respectively. Investors were spooked by a warning from chip maker Micron Technology about the semiconductor industry, a strong labor market and consumer spending data that confirmed expectations for interest rates “higher for longer”.
Oil prices rose on Friday and headed for a big weekly gain as investors expected a Low supply of Russian crude. That helped calm concerns about lower US transportation fuel demand ahead of a winter storm moving toward North America. West Texas Intermediate crude futures — the US benchmark — rose 2% to $79 a barrel.
US Treasury yields rose, while the US dollar index fell against a basket of other currencies.
Alexandra Semenova is a correspondent at Yahoo Finance. Follow her on Twitter @tweet
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