News
Bull
Volatility: 3/5
Fed’s preferred inflation gauge shows core prices rose 3.3% annually in July
August 26, 2026
·
cnbc
·
90% confidence
Summary
Core PCE inflation at 3.3% annual in July, below expected 3.6%, signals cooling inflation.
AI Analysis
Lower core PCE than expected reduces need for Fed rate hikes, easing financial conditions, lifting equity valuations, especially growth and rate-sensitive sectors.
Direction
Bull
Volatility
3/5 - Moderate
AI Confidence
90%
Affected Stocks
AAPL
MSFT
NVDA
AMZN
DHI
JPM
BAC
C
Likely Winners
AAPL (Apple)
MSFT (Microsoft)
NVDA (Nvidia)
AMZN (Amazon)
DHI (D.R. Horton)
Likely Losers
JPM (JPMorgan Chase)
BAC (Bank of America)
C (Citigroup)
Suggested Action
Buy QQQ for growth exposure to falling rate expectations
Recommended Actions
- Buy QQQ for growth exposure to falling rate expectations
- Buy TLT to benefit from lower long-term yields
- Add DHI or XHB to play rate-sensitive housing
- Avoid or short XLF to hedge against margin compression
- Monitor upcoming CPI and Fed speeches for confirmation