◦ Dow Jones Industrial Average -0.9%
◦ S&P 500 +0.3%
◦ Russell 2000 -0.3%
◦ NASDAQ +3.6%
Domestic equity markets finished the week mixed as investors anxiously awaited results from the Federal Reserve’s preferred inflation gauge, Personal Consumption Expenditures (PCE). Stocks performed well when considering inflation (as measured by PCE) came in hotter than the prior month. The Fed uses this data point to determine whether or not inflation is returning to its 2% goal. Additionally, former Fed chair Ben Bernanke publicly stated the labor market presents an ongoing issue due to the fact nearly two jobs exist for every one unemployed individual. It means employers must raise wages to attract workers – further propping up pricing pressures. Lastly, debt-ceiling drama remains unresolved and rating agencies are threatening to downgrade the U.S.’s credit rating. Stocks proved resilient this week in the face of challenging economic news.