PCE inflation in the US below expectations, AI boom drives tech stocks

PCE inflation, which is important for the US Federal Reserve Bank, was within or slightly below expectations in August. The PCE price index measures the price development of private consumer spending in the USA. Wall Street reacts positively, the yield on ten-year US government bonds is falling. In addition, the president of the regional central bank of New York emphasized that an interest rate increase in October would be hasty. The probability of such a step priced into the financial markets then fell from more than 70 to less than 40 percent.

When it comes to artificial intelligence, the momentum remains high. The US electronics manufacturer Jabil significantly exceeds expectations for sales and profits; the intelligent infrastructure business is growing by 56 percent. The IT group Hewlett Packard Enterprise is also raising its growth forecast for the network technology business.

In the evening the focus will be on the US memory chip manufacturer Micron. After the AI-driven boom in memory chips, expectations are high: Wall Street expects an increase in sales of more than 350 percent and a jump in profits of around 950 percent.