Analyst: If the U.S. PCE inflation data rises, it may cause investors to worry that the interest rate cut expectations are too optimistic

Traders are waiting for the next catalyst that could help the market regain its upward momentum, possibly focusing on the Federal Reserve's preferred inflation indicator—the core PCE price index—to assess the central bank's next steps. "Friday's PCE is the next key economic indicator for the market," said Paul Stanley, Chief Investment Officer of Granite Bay Wealth Management. "If there is an upside, it may raise concerns among investors that the expectations for interest rate cuts are too optimistic, and the Federal Reserve may need to adopt a more wait-and-see approach on interest rates." (Bloomberg)