Micron surged 17% after the chipmaker reported fiscal third-quarter results that topped analysts’ expectations. Fellow semiconductor stock Qualcomm gained 7% after raising guidance for its non-handset revenue in fiscal 2029.
May’s personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge, showed that the headline index rose 0.4% on the month, just below the 0.5% rise that economists polled by Dow Jones were expecting. The headline index also rose 4.1% on a yearly basis, in line with expectations.
Excluding volatile food and energy prices, core PCE gained 0.3% month over month and 3.4% year over year. While core inflation reached its highest level since October 2023, investors were relieved the numbers weren’t even higher in the wake of rising energy prices from the West Asia conflict.
Fed’s preferred inflation measure heated up in May, keeping talk of a possible rate hike in play. According to a Yahoo Finance report by Jennifer Schonberger, the Federal Reserve’s preferred inflation gauge showed prices rose further in May, likely keeping policymakers on a cautious footing as they assess the persistence of price pressures.
The Personal Consumption Expenditures (PCE) index rose 4.1% in May, in line with expectations and up from 3.8% in April. Month over month, inflation increased 0.4%, a tenth of a percentage point below forecasts and unchanged from April.
In another lift to spirits, oil prices fell back to levels not seen since the Iran war, down over 1% as supply flooded back through the Strait of Hormuz. Brent crude futures dropped to below $73 a barrel, while West Texas Intermediate futures slipped under $70.
