Nasdaq 100 Climbs as Cooler PCE Cuts Rate Hike Bets, Micron Earnings Loom: Stock Market Today
Key takeaways
- Cooler inflation data and rising oil prices lift tech stocks, but Treasury yields remain high, keeping a cautious backdrop for growth equity.
- PCE rose 0.3% in August
- Annual PCE rate 3.4% vs 3.7% forecast
- Core PCE cooler than expected
What happened
U.S. stocks rose midday, led by tech and software names, after the Personal Consumption Expenditures inflation data came in cooler than expected, easing fears of another Federal Reserve rate hike. Oil prices climbed as geopolitical risk in the Middle East kept the risk premium alive, while long‑dated Treasury yields stayed near multi‑decade highs. United Therapeutics shares surged 14.1% on a backdrop of Trump’s comments on Iran sanctions, and Micron Technology is set to report fiscal Q4…
Why it matters
The softer PCE reading cuts the probability of an October rate hike to under 40%, supporting equity valuations and reducing discount rates for growth stocks. Rising oil prices add pressure to energy‑sensitive sectors but support crude‑related ETFs. Micron’s upcoming earnings could confirm its AI‑driven demand outlook…
Short-term and longer-term
Short-term. Short‑term traders should watch the Nasdaq 100 and tech‑heavy ETFs like QQQ for momentum, as the recent PCE data has reduced the odds of a Fed hike.
Longer-term. Over the next few weeks, investors should monitor Micron’s Q4 results for confirmation of its AI‑driven demand and margin profile, which could influence the broader semiconductor cycle.