From the Desk - Economic Commentary
Brandon Casey, Member Strategies - 12/5/2025
U.S. stocks are higher Friday morning after inflation readings further solidified the believe that the Fed will cut the benchmark rate next week. All three major averages are up at least 0.5% in early trading as each continues to inch closer to record high levels. All three averages are also higher on the week, led by the Nasdaq rising 1%.
Looking at economic data today, the delayed September PCE Price Index rose 0.3% for the month and 2.8% over the last twelve months, the highest level since April 2024. Core PCE, the Fed’s preferred inflation measure, was up 0.2% for the month and 2.8% over the last year. The year-over-year core reading was down 0.1% from the previous month.
Personal spending increased 0.3% in September, down from 0.5% the previous reading and below expectations of 0.4%. Personal incomes rose 0.4%, beating expectations and matching the rate from the previous month. The personal savings rate was 4.7%, unchanged from the previous month.
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