Wall Street Awaits PCE Inflation Data: Market Rundown with Reuters

Market Performance and Inflation Data

• 📈 Wall Street closed at record highs on Thursday, with the S&P 500 surpassing 6,500 for the first time and marking its 20th record close of the year.
• 🎯 All eyes are now on the July PCE inflation data, the Fed's preferred inflation measure, due later today.
• ⚠️ Expectations are for the core PCE to rise 2.9% year-over-year, the fastest pace in five months, though this may not deter a September interest rate cut.

Geopolitics and Oil Prices

• 🛢️ Oil prices are trending lower, heading for a monthly loss, as geopolitical tensions continue to influence the market.
• 🤝 Russian President Putin is set to meet with Indian and Chinese energy partners, with a focus on maintaining Russian crude imports by India.
• ⚡ President Trump's anticipated statement on Russia and Ukraine could lead to stricter penalties on Russian energy shipments.

Economic Impact of Tariffs

• 💰 Caterpillar anticipates a $1.8 billion tariff impact, exceeding previous guidance, due to increased expenses across its supply chains.
• 📉 Japan's factory output slumped in July, partly due to US tariffs, while inflation eased to its slowest pace since March.
• 🏦 Economists predict the Bank of Japan will hold interest rates at its next meeting but may hike in October.

Dell's AI-Driven Outlook

• 🚀 Dell raised its full-year outlook, projecting $20 billion in fiscal 2026 revenue driven by strong demand for AI server shipments.
• ⚠️ Despite the raised outlook, the stock faced pressure due to software expectations for the current quarter and investor concerns about the profitability of AI servers, which rely on expensive Nvidia processors.