U.S. PCE data: tech stocks could ‘continue to run up’

Nasdaq Composite is in focus this morning after the U.S. Bureau of Labour of Statistics said the core personal consumption expenditures price index was up more than expected in April.

What today’s inflation data means for tech stocks

For the month, the Fed’s preferred inflation gauge rose 0.4% - supporting the narrative that rates could remain higher for longer.

Still, Victoria Greene – the Chief Investment Officer of G Squared Private Wealth is convinced that the ongoing rally in tech stocks is far from over yet.

On an annual basis, the core PCE was up 4.7%. Economists had forecast the reading at 0.3% for the month and 4.6% for the year.

Consumer spending remained strong in April

Headline PCE, including food and energy, climbed 0.4% for the month and 4.4% for the year – also above the Dow Jones estimates.

Despite stubbornly high inflation, consumer spending increased 0.8% in April versus a 0.4% jump expected. Greene also said today on CNBC’s “Worldwide Exchange”:

At writing, the tech-heavy index is up more than 22% versus the start of the year. BEA also reported a 0.4% increase in personal income for April on Friday.