US Economic Data Sends Dovish Signal to Investors Following FOMC Meeting

The recent release of major economic data has sent a dovish signal to investors following the Federal Reserve's (FOMC) meeting. The US June Personal Consumption Expenditures (PCE) price index fell by 0.1% month-over-month and rose 3.7% year-over-year, with core PCE increasing just 0.1% month-over-month and 3.3% year-over-year.

The data also showed that second-quarter GDP grew at an annualized rate of 1.5%, and initial jobless claims came in at 197,000, indicating slowing growth but resilient labor markets. Despite the Fed holding rates steady at 3.50%-3.75% and three committee members advocating for further hikes, this data has temporarily eased concerns about an 'immediate tightening.'

However, with oil prices remaining elevated and core inflation still far from the 2% target, the path in September will depend heavily on incoming data. The market is watching to see if longer-end yields can retreat, creating room for valuation recovery in tech growth stocks.