Wall Street rises as inflation slows
U.S. stock indices on Wall Street rose after data showed a slowdown in inflation for the past month. The annual inflation rate for the Personal Consumption Expenditures (PCE) index stood at 3.4% in August, down from 3.7% in July. Meanwhile, the core inflation rate, which excludes food and energy prices, was at 3%, below expectations. This slowdown led to a decline in yields on 10- and 30-year Treasury bonds, prompting investors to anticipate a lower likelihood of the Federal Reserve raising interest rates. The probability of a rate hike dropped by 16%, reaching 35% for the next month. The data reflect market recovery and optimism, as concerns over persistent inflation ease, even though expectations of a rate increase in December remain.
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