September 30, 2026
U.S. stock futures moved higher Wednesday morning after new inflation data came in below economists’ expectations, giving investors some relief after renewed concerns that the Federal Reserve could raise interest rates again.
The Commerce Department reported that the Personal Consumption Expenditures, or PCE, price index rose 0.3% in August, compared with the 0.4% increase economists surveyed by Reuters had expected. On a year-over-year basis, PCE inflation was 3.4%, below the expected 3.7%.
Core PCE—which excludes volatile food and energy prices—also came in softer than expected. It increased 0.2% for the month and 3.0% from a year earlier, versus forecasts of 0.3% and 3.3%, respectively.
Investors Watch the Federal Reserve
The PCE index is closely followed by the Federal Reserve when assessing inflation pressures.
Recent increases in Treasury yields had raised concerns that persistent inflation could force policymakers to keep interest rates elevated—or potentially raise them again.
Wednesday’s report eased some of those fears.
Ahead of the market open, futures tied to the Dow Jones Industrial Average were up about 0.35%, S&P 500 futures gained roughly 0.4%, and Nasdaq futures rose about 0.39%.
What Comes Next
Investors will continue watching upcoming employment, wage and inflation reports for clues about the Federal Reserve’s next policy decision.
One softer inflation report does not establish a lasting trend, but it gives policymakers more room to evaluate the economy before making another move on interest rates.
For households, the direction of inflation and Federal Reserve policy can eventually affect borrowing costs across mortgages, auto loans, credit cards and business financing.
