Stock Market Update

The S&P 500 futures are down two points and are trading fractionally below fair value, the Nasdaq 100 futures are up 34 points and are trading 0.2% above fair value, and the Dow Jones Industrial Average futures are down 138 points and are trading 0.3% below fair value.

Total CPI increased 0.2% month-over-month in August, as expected. Core-CPI, which excludes food and energy, increased 0.3% month-over-month (Briefing.com consensus 0.2%), led by a 0.5% increase in the shelter index. On a year-over-year basis, total CPI was up 2.5% -- the smallest 12-month increase since February 2021. Core-CPI increased 3.2% over the last 12 months, unchanged from July.

The key takeaway from the report is the understanding that core inflation is sticking stubbornly above the Fed's inflation goal of 2.0% which, to be fair, is oriented around the PCE Price Index. Still, the elevated core reading on a monthly and annual basis will be a focal point for the Fed and a likely reason to keep a September rate cut capped at 25 basis points.