New York Stock Market Mixed Ahead of PCE Inflation Data Release... Nasdaq Up 0.42%

US Commerce Department to Release April PCE Inflation Data on 31st
Expected Increase of 0.2% MoM, 2.8% YoY
Minneapolis Fed President Says "No Exclusion of Rate Hike"

The three major indices of the U.S. New York stock market, which was closed the previous day due to Memorial Day, are showing mixed trends in early trading on the 28th (local time), the first trading day of the week. Investors are cautiously watching ahead of the release of the April Personal Consumption Expenditures (PCE) price index on the 31st, digesting remarks from Federal Reserve (Fed) officials.

As of 9:37 a.m. at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average was down 0.35% from the previous close, standing at 38,931.8. The S&P 500, which is centered on large-cap stocks, rose 0.11% to 5310.43, while the tech-heavy Nasdaq index increased 0.42% to 16,992.32.

By individual stocks, Nvidia, which reported stronger-than-expected earnings last week, is up 4.31%. Apple rose 1.47% following news that smartphone shipments in China increased by 52% year-on-year last month. GameStop surged 17.58% after announcing it sold 45 million shares, generating $933 million in revenue. Tesla fell 3.01% as a U.S. proxy advisory firm recommended shareholders vote against a $56 billion stock option grant to CEO Elon Musk scheduled for next month.

The biggest focus for investors this week is the April PCE inflation data to be released by the U.S. Department of Commerce on the 31st. After inflation showed strength earlier this year and the Consumer Price Index (CPI) inflation rate slowed last month, the key question is whether the PCE inflation will also show signs of easing.

The market expects the core PCE price index, which excludes volatile food and energy prices and reflects the underlying inflation trend, to have risen 0.2% month-on-month and 2.8% year-on-year last month. In March, it rose 0.3% month-on-month and 2.8% year-on-year. The headline PCE price index is forecast to increase 0.3% month-on-month and 2.7% year-on-year, maintaining the same level as last month.

Marisa Baetmeier, Senior Multi-Asset Strategist at State Street Global Markets, said, "We are closely monitoring inflation data right now," adding, "Investors will continue to support stocks and take on risk."

Remarks from Fed officials, which provide clues about the future monetary policy path, are also ongoing. Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, said he wants to see several months of data indicating inflation easing before considering rate cuts. He emphasized that if price pressures increase, he would not rule out further rate hikes. Later in the day, speeches by Fed Governor Lisa Cook and Mary Daly, President of the San Francisco Fed, are scheduled.

This week will also see the release of the revised first-quarter U.S. Gross Domestic Product (GDP) figures. The first-quarter GDP growth rate, to be announced on the 30th, is expected to be 1.3% annualized year-on-year, lower than the preliminary estimate of 1.6%. The Fed's Beige Book, a report on economic conditions, will be released a day earlier on the 29th.

U.S. Treasury yields are declining. The 2-year Treasury yield, sensitive to monetary policy, is down 3 basis points (1 bp = 0.01 percentage points) from the previous trading day, trading around 4.91%. The 10-year Treasury yield, a global benchmark for bond yields, is down 1 basis point to about 4.46%.

International oil prices are rising. The expectation that the Organization of the Petroleum Exporting Countries Plus (OPEC+) will continue its production cuts has offset concerns about demand contraction due to prolonged high interest rates by the Fed. West Texas Intermediate (WTI) crude oil rose $1.39 (1.79%) to $79.11 per barrel, while Brent crude, the global benchmark, increased $0.43 (0.52%) to $83.31 per barrel.