A Stock Market Indicator Flashes a Warning Last Seen in 2007. Warren Buffett Explains Why It Matters.

PCE inflation rose to 3.8% in April, the highest level in three years, signaling stickier price pressures than markets had expected. The reading strengthens the case for a more hawkish Federal Reserve stance, with investors now anticipating rate hikes in 2026. The data is likely to influence rates markets broadly rather than any single sector.

Analysis

PCE inflation rose to 3.8% in April, the highest level in three years, signaling stickier price pressures than markets had expected. The reading strengthens the case for a more hawkish Federal Reserve stance, with investors now anticipating rate hikes in 2026. The data is likely to influence rates markets broadly rather than any single sector.