Stocks slip after economic data disappoints
The SPDR S&P 500 ETF slipped to premarket lows after underwhelming economic data.
Core inflation surprised to the upside in December, while the initial read of economic growth in the final three months of 2025 was weak.
Core PCE inflation rose 0.4% month on month to end the year, while economists had anticipated a rise of 0.3%. Q4 GDP rose just 1.4% quarter on quarter at a seasonally adjusted and annualized rate, while analysts thought growth would be twice as strong.
The implied odds of any Federal Reserve action at its April or June meetings was little changed in the immediate aftermath of these releases.
(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)
The PCE is the Federal Reserve’s preferred measure of inflation, with the core gauge that strips out volatile food and energy prices used to get a better sense of the underlying trend in price pressures.
