The U.S. Bureau of Economic Analysis issued data Friday showing the Personal Consumption Expenditure (PCE) price index, the Federal Reserve’s favored measure of inflation, rose by 4.4% year over year in April, ahead of the 4.3% expected, and the 4.2% increase seen in March.
The data hints at persistent inflation, increasing the likelihood of more Fed rate hikes and confirming the FOMC's suggestion that borrowing rates may need to stay high for an extended period.
In the wake of this report, traders increased expectations for an interest rate hike in June. The market-implied probability for a 25-basis-point rise jumped to 46% from a previous 42%. A hike by the end of the July meeting is now almost 70% probable.
The economic projections caused traders to push the price of stocks around, here are the top movers.
Marvell Technology Inc MRVL climbed 24.11% to $61.86.
PDD Holdings Inc – ADR PDD rose 13.91% to $68.55.
Gap Inc GPS gained 12% to trade at $8.32.
Ulta Beauty Inc ULTA fell 11.95% to $426.90.
PagSeguro Digital Ltd PAGS shares dipped 10.52% to $10.76.
Gol Intelligent Airlines GOL rose 8.3% to $3.31.
Workday Inc WDAY rose 8% to $212.12.
Coherent Corp COHR gained 6% to $34.45.
RH RH fell 6% to $239.05.
HUTCHMED (China) Ltd HCM gained 4% to $12.79.
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