On Wednesday, U.S. August core PCE inflation data came in unexpectedly lower than expected, but Federal Reserve officials continued to send strong hawkish signals.Cook reiterated that inflation has exceeded the 2% target for more than five years, supported a rate hike in September, and pledged to restore price stability, while Goolsbee warned that persistently high inflation is “playing with fire” and that massive fiscal deficits themselves constitute a stimulus.
The U.S. Dollar Index ultimately closed up 0.08% at 101.47.The yield on the benchmark 10-year U.S. Treasury note hit its highest level since May 2002, ultimately closing up 5.4 basis points at 5.295%; the yield on the 2-year U.S. Treasury note, which is sensitive to the Fed’s policy rate, rose 1.7 basis points to 4.902%.
Spot gold extended its intraday rebound but ultimately retreated, closing down 0.61% at $4,157.12 per ounce; spot silver closed down 1.69% at $60.43 per ounce.
International oil prices reversed the previous day’s decline and resumed their upward trend following reports that negotiations between the U.S. and Iran on reopening the Strait of Hormuz had reached an impasse, and that U.S. President Trump had denied plans to lift sanctions on Iran in exchange for nuclear concessions.WTI crude oil ultimately closed up 1.57% at $89.45 per barrel; Brent crude oil closed up 2.18% at $97.52 per barrel.
In the U.S. stock market, the Dow Jones Industrial Average closed down 0.86%, the S&P 500 fell 0.25%, and the Nasdaq rose 0.24%.Intel (INTC.O) rose 3.71%, Apple (AAPL.O) rose 1.1%, Nvidia (NVDA.O) rose 0.51%, and Google (GOOG.O) rose 0.93%;Moderna (MRNA.O) fell 5.35%, and Ford Motor (F.N) fell 1.95%. The Nasdaq Golden Dragon China Index rose 0.6%; Baidu (BIDU.O) rose 0.18%, and Alibaba (BABA.N) fell 0.17%.