On Friday, the US Bureau of Economic Analysis released data showing the Personal Consumption Expenditure (PCE) price index, which is the Federal Reserve’s favoured gauge of inflation, increased by 4.4% YoY in April, higher than the expected 4.3% and the 4.2% seen in March. This data suggests sustained inflation, increases the likelihood of more Fed rate hikes, and confirms FOMC’s belief that borrowing rates may stay high for an extended period of time.
After the release of the report, traders’ expectations for an interest rate hike in June rose. The market’s implied probability for a 25-basis-point rise surpassed the previous 42% to 46%. Meanwhile, a rate hike at the July meeting is almost 70% imminent.
The projections affected the stock prices, and the leading movers are as follows:
Marvell Technology Inc MRVL rose by 24.11% to $61.86.
PDD Holdings Inc – ADR PDD witnessed a 13.91% hike to trade at $68.55.
Gap Inc GPS experienced a 12% gain and is trading at $8.32.
Ulta Beauty Inc ULTA declined by 11.95%, trading at $426.90.
PagSeguro Digital Ltd PAGS shares experienced a dip of 10.52% and is now trading at $10.76.
Gol Intelligent Airlines GOL rose by 8.3% to $3.31.
Workday Inc WDAY increased by 8% to $212.12.
Coherent Corp COHR rose by 6% to $34.45.
RH RH declined by 6% to $239.05.
HUTCHMED (China) Ltd HCM rose by 4% to $12.79.
Read next: Congressional Debt Ceiling Talks Gain Momentum, Critical Deal In Sight ‘Because Default Is Unacceptable’: Report