YoY Core PCE, the Fed’s preferred gauge of inflation, rose to 2.9% in July – even further away from the Fed’s 2.0% target. Everything else was in line with expectations.

Futures were already modestly lower and were little moved after the print.

continued for members…

SPX reached its 1.272 yesterday before retreating.

VIX continues its slide. Some reports have it falling by the greatest percentage YTD ever.  I’ll check on this.

UPDATE:  From HERE

EURUSD continues its trend of lower highs…

…as USDJPY continues to hang in there.DXY’s divergence with TNX is becoming harder to ignore.Meanwhile, note that the 2Y is breaking down – unlike the 10Y.  If this trend continues, it’ll put upward pressure on the 2s10s at a time when SPX is bumping up against overhead resistance.

The applicants for Powell’s job and Wall Street establishment are making lots of noise about getting out ahead of a potential jobs decline. But, the inflation data is already here. Why would the Fed cut rates if inflation is already headed in the wrong direction, with more to come?