Washington, D.C. – Economists are eagerly awaiting the release of the personal consumption expenditures price index on Friday morning, as it will provide key insights into the latest inflation metrics for the Federal Reserve. Analysts predict that headline PCE for March grew by 0.3% from the previous month and by 2.6% from the same time last year. Core prices, which exclude food and energy costs, are expected to have increased by 0.3% on a monthly basis and by 2.7% year over year.
The first-quarter gross domestic product report, released on Thursday, revealed a significant rise in PCE by 3.4%, surpassing the 1.8% increase in the fourth quarter. This result led to a stock sell-off as investors expressed concerns about signs of stagflation, a scenario where economic growth slows down while inflation rises.
In other news, after-hours trading saw some notable movements among various companies. Snap shares surged over 27% following the release of their first-quarter results, which exceeded analysts’ expectations. However, Intel experienced an 8% decline in extended trading after falling short of first-quarter sales expectations and providing a weak forecast for the current quarter. Dexcom, a manufacturer of glucose monitoring systems, also saw an 8% decrease despite beating revenue and profit projections. On the other hand, Gilead Sciences saw a nearly 3% increase in stock value after delivering a quarterly report that outperformed expectations.
Overall, the upcoming release of the PCE price index will be crucial in guiding the Federal Reserve’s monetary policy decisions amidst concerns about inflation and economic growth. Investors will be closely monitoring the data to gauge the trajectory of the economy in the coming months.