LIVE MARKETS-Wall Street rises in choppy trading after in-line inflation data

Reuters
28 Feb
LIVE MARKETS-Wall Street rises in choppy trading after in-line inflation data

US indexes green; Nasdaq out front, up >0.6%

Feb Chicago PMI 45.5 vs 40.6 estimate

Euro STOXX 600 index off ~0.1%

Dollar, bitcoin slip; gold, crude both off >1%

US 10-Year Treasury yield falls to ~4.25%

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WALL STREET RISES IN CHOPPY TRADING AFTER IN-LINE INFLATION DATA

Shares on Wall Street are rallying on Friday in choppy trading, with the market mood still cautious overall, after a generally in-line personal consumption expenditures data in January. However, concerns that U.S. President Donald Trump's policies could further stoke inflation are keeping investors on edge.

The PCE price index increased 0.3% in January after advancing by an unrevised 0.3% in December. Stripping out the volatile food and energy components, the PCE price index gained 0.3% last month after an unrevised 0.2% rise in December.

"The inflation numbers still remain elevated, although they came in within expectations, but on a year-to-year basis there was a slight relief from the previous reading, but the report indicates that inflation remains sticky," says Peter Cardillo, chief market economist, at Spartan Capital Securities.

"That means the pause will continue. And that means that the Fed may have a dilemma on its hands because the recent macro numbers are cooling and it shows signs of the economy cooling."

Tariff talk remains a focus for investors.

Trump's latest threat to slap an extra 10% duty on imports from China hit U.S.-listed China stocks such as Alibaba BABA.N and Xpeng XPEV.N, which are down sharply.

Trump also said his proposed 25% tariffs on Mexican and Canadian goods would take effect on Tuesday.

Here is a morning market snapshot:

(Gertrude Chavez-Dreyfuss, Stephen Culp)

*****

FOR FRIDAY'S EARLIER LIVE MARKETS POSTS:

INDIVIDUAL INVESTOR BULLS AND BEARS SEE SOME EYE POPPING MOVES - AAII - CLICK HERE

EUROPE'S DEFENCE SECTOR SET FOR BIGGEST WEEKLY JUMP SINCE 2020 - CLICK HERE

EQUITY BUBBLE RISK ALIVE AND JUSTIFIABLE, BUT WE'RE NOT IN ONE - UBS - CLICK HERE

TAIWAN, EUROPE, CANADA MOST EXPOSED STOCK MARKETS TO U.S. TARIFFS - CLICK HERE

TARIFF JITTERS KEEP STOXX SUBDUED DESPITE ROSY EARNINGS - CLICK HERE

EUROPE BEFORE THE BELL: TARIFF FEARS BATTER FUTURES - CLICK HERE

NO PLACE TO HIDE FROM TRUMP TARIFF WORRIES - CLICK HERE

US morning snapshot https://tmsnrt.rs/3QCGOIf

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