Stock market today: Nasdaq leads US futures higher while GameStop skyrockets

The PCE (Personal Consumption Expenditures) data is a key indicator of inflation, and the Federal Reserve pays close attention to it when making monetary policy decisions. In the recent PCE report, the core PCE, which excludes volatile food and energy components, increased by 0.2% in April. This reading was in line with Wall Street's expectations but marked a slower pace than the 0.3% increase witnessed in March.

This PCE data has led to a mixed reaction among investors. On one hand, some investors view the data as a positive sign that progress is being made in the battle against inflation. The slower pace of increase in core PCE could signal that inflation is starting to cool down, which might prompt the Federal Reserve to consider rate cuts in the future. This has led to optimism among investors, as lower interest rates can boost business costs and potentially lead to a stronger stock market.

On the other hand, there are still concerns about inflation, particularly in the services sector and the potential for harder year-over-year comparisons. While the core PCE data showed a slight slowdown in inflation, the super core number, which excludes housing, remained sticky and elevated. This could indicate that the fight against inflation is far from over and that the Federal Reserve may need to remain cautious.

Overall, the PCE data has brought a mixed outlook on investor optimism regarding future Federal Reserve actions. While some see the data as a sign of progress in combating inflation, others remain cautious and concerned about the stickiness of certain inflation measures.

Nvidia's AI chip update had a positive impact on its stock performance, with shares rising about 4% shortly after the announcement. The company unveiled a new AI platform, which is expected to accelerate the pace of model upgrades. This update contributed to the overall enthusiasm for AI technology in the market, which has been lifting tech stocks recently.