The Commerce Department's personal consumption expenditures index, the Fed's preferred inflation gauge,U.S. consumer spending also fell in December, putting the economy on a lower growth path in 2023.stuck to their bets that the central bank will raise rates just once more beyond next week's widely expected quarter-point hike.
Markets expect the terminal rate to rise to 4.9% in June, still below many policymakers' expectations of beyond 5%. "There's a lot of volatility in markets today with investors digesting company earnings, but ultimately they are looking ahead to next week when the Federal Reserve is going to meet," Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, said.Separately, the University of Michigan Consumer Sentiment Survey showed that healthy incomes and easing inflation liftedMore than a quarter of the S&P 500 companies have reported earnings so far, of which 67.