News
Bear
Volatility: 3/5
Slightly hotter than expected PCE inflation keeps Fed’s September rate rise in play
August 26, 2026
·
financial_times
·
80% confidence
Summary
Hotter July PCE inflation keeps Fed rate hike in play, pressuring stocks.
AI Analysis
Higher PCE inflation suggests sticky prices, likely keeping rates elevated for longer. Elevated discount rates compress equity valuations, especially long-duration growth stocks, while increasing interest burden on corporates.
Direction
Bear
Volatility
3/5 - Moderate
AI Confidence
80%
Affected Stocks
JPM
GS
NVDA
MSFT
DHI
NEE
Likely Winners
JPM (JPMorgan Chase)
GS (Goldman Sachs)
Likely Losers
NVDA (Nvidia)
MSFT (Microsoft)
DHI (D.R. Horton)
NEE (NextEra Energy)
Suggested Action
Short the iShares 20+ Year Treasury Bond ETF (TLT) as rates rise
Recommended Actions
- Short the iShares 20+ Year Treasury Bond ETF (TLT) as rates rise
- Buy put options on the Invesco QQQ Trust (QQQ) to hedge tech downside
- Add to long positions in JPMorgan (JPM) for higher net interest margin
- Monitor the CME FedWatch tool for September rate hike probability