With oil prices being hammered lower, inflation should eventually make its way back to an acceptable level. But, that’s not the hand the Fed is being dealt just yet.

Headline PCE rose 4.1% YoY and 0.4% MoM, the highest since April 2023. Core PCE, which excludes food and energy prices, rose 3.4% YoY and 0.3% MoM – still high enough to concern the hawks and the doves, as was the personal income. personal spending, GDP and claims data — which won’t necessarily follow oil prices lower – at least any time soon.

Futures are still revved up by yesterday’s AI darlings and the bounce off the ascendant SMA50. But, it’s hard to get excited about such a narrow sliver of the market, especially when currencies and bonds are saying to sell,  Now.