The equity markets reached new highs last week, with the Nasdaq setting a record on Thursday and again on Friday, surpassing its November 2021 peak after more than two years. The market closely watched the release of the PCE (Personal Consumption Expenditure) inflation indexes, which came in line with expectations for January. The PCE index, considered a more accurate measure of inflation by the Fed, showed a 2.4% year/year rate for January, down from 2.6% in December. The core index, excluding food and energy, stood at 2.8% year/year.
Service prices rose by 0.6% in January, reflecting a return to normal consumption patterns post-pandemic. However, goods prices fell by 0.2% in January. The Fed is unlikely to consider rate hikes in the near future given the moderate inflation figures.
