The Investor
26 Aug 2026, 14:44
US Stocks Open Slightly Lower as PCE Inflation Remains Elevated
US stocks opened modestly lower on Wednesday as investors assessed July inflation data that showed underlying price pressures remained persistent.
The S&P 500 slipped 0.07% to 7,671.53 shortly after the opening bell, while the Dow Jones Industrial Average fell 0.15% to 53,499.19. The technology-heavy Nasdaq Composite declined 0.28% to 26,079.36, underperforming the broader market.
Core PCE Holds at 3.3%
The Federal Reserve's closely watched core PCE price index increased 3.3% year over year in July, unchanged from the previous month and matching market expectations.
On a monthly basis, core PCE rose 0.2%, also in line with forecasts, but accelerating slightly from June's 0.1% increase.
Headline inflation delivered a somewhat firmer signal. The PCE price index rose 0.2% month over month, above the 0.1% expected and reversing the previous month's 0.1% decline. Annual headline PCE inflation came in at 3.7%, slightly above the 3.6% forecast but unchanged from June.
Inflation Data Keeps Fed Outlook in Focus
The figures suggest inflation remains sticky, with both headline and core PCE running well above the Federal Reserve's 2% target. While the core readings matched expectations, the hotter-than-forecast monthly headline figure offered little evidence of a decisive return toward price stability.
That may be contributing to the cautious start on Wall Street, particularly in rate-sensitive technology stocks, with the Nasdaq posting the largest decline among the three major indexes.
Investors will now assess whether persistent inflation pressures could keep US monetary policy restrictive for longer than previously anticipated.
US stocks opened modestly lower on Wednesday as investors assessed July inflation data that showed underlying price pressures remained persistent.
The S&P 500 slipped 0.07% to 7,671.53 shortly after the opening bell, while the Dow Jones Industrial Average fell 0.15% to 53,499.19. The technology-heavy Nasdaq Composite declined 0.28% to 26,079.36, underperforming the broader market.
Core PCE Holds at 3.3%
The Federal Reserve's closely watched core PCE price index increased 3.3% year over year in July, unchanged from the previous month and matching market expectations.
On a monthly basis, core PCE rose 0.2%, also in line with forecasts, but accelerating slightly from June's 0.1% increase.
Headline inflation delivered a somewhat firmer signal. The PCE price index rose 0.2% month over month, above the 0.1% expected and reversing the previous month's 0.1% decline. Annual headline PCE inflation came in at 3.7%, slightly above the 3.6% forecast but unchanged from June.
Inflation Data Keeps Fed Outlook in Focus
The figures suggest inflation remains sticky, with both headline and core PCE running well above the Federal Reserve's 2% target. While the core readings matched expectations, the hotter-than-forecast monthly headline figure offered little evidence of a decisive return toward price stability.
That may be contributing to the cautious start on Wall Street, particularly in rate-sensitive technology stocks, with the Nasdaq posting the largest decline among the three major indexes.
Investors will now assess whether persistent inflation pressures could keep US monetary policy restrictive for longer than previously anticipated.
