On Friday, global stock markets presented a mixed picture. While expectations for ongoing rate cuts by the US central bank supported mood, persistent concerns about inflation limited the gains in bourses that rose.
It is increasingly anticipated by market optimists that the Federal Reserve would lower interest rates not just this month but multiple times in the next year.
However, these forecasts are dependent on moderate inflation in the US.
According to observers, Friday’s personal consumption expenditures (PCE) price index, which is the Fed’s favored measure of inflation, was not entirely encouraging.
The PCE reading, which came in line with forecasts, “should cement a rate cut at next week’s Fed meeting,” said Bret Kenwell, US Investment Analyst at eToro, a trading firm.
But, he cautioned, “it continues to point toward a sticky inflation situation.”
Optimism on a series of 2026 rate cuts has been mostly based on reports reinforcing the view that the US jobs market is softening.
Friday’s PCE report rose to 2.8 percent on an annual basis in September from 2.7 percent in August, a release delayed by the lengthy US government shutdown.
US markets largely shrugged off the inflation report. All three major indices in New York finished modestly higher, with the S&P 500 climbing 0.2 percent.
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