FrançaisSee Pro
  

Thursday, October 29, 2026 · Morning briefing

Hotter September core PCE inflation and stronger Q3 GDP follow Alphabet's earnings miss

Published Oct 29, 9:20 AM ET

What matters today

  1. Core PCE inflation, a Fed-watched price gauge that excludes food and energy, rose 0.5% in September versus 0.3% expected.
  2. Third-quarter GDP grew 3.4% against a 3.2% estimate, and weekly jobless claims came in at 194K versus 199K expected.
  3. The data arrives days after the Fed held rates, with new Chair Kevin Warsh signaling he leans toward higher rates.
  4. US futures fell after Alphabet's earnings miss revived worries about AI spending, with Amazon's results still ahead.
  5. The ECB announces its rate decision today and is widely expected to hold, after Lagarde said she will step down Feb. 7.

Overnight

The US 10-year Treasury yield closed at 5.05%, up from 4.99%, after the Fed held rates and Chair Warsh left the door open to future hikes. Alphabet slid over 9% after hours on weaker search revenue, while Microsoft's capital spending landed $6bn below forecast, adding to questions about the AI build-out. Oil eased on reports of a US outreach to Iran aimed at a temporary peace deal, though President Trump downplayed the talks. Bitcoin was at 80,081 USD, down 0.67% over 24 hours.

Top headlines

  • September core PCE rose 0.5% month over month, above the 0.3% forecast; headline PCE matched expectations at 3.6% annually.ForexLive ↗
  • Advance estimate shows US economy grew 3.4% in the third quarter, beating the 3.2% consensus.ForexLive ↗
  • Weekly initial jobless claims fell short of forecasts at 194K, while continuing claims also came in below expectations.ForexLive ↗
  • Alphabet missed earnings estimates as core search revenue disappointed, raising concern that AI is eroding its main business.CNBC Top News ↗
  • Fed Chair Warsh signaled a tilt toward higher rates but kept flexibility to respond to incoming data.CNBC Markets ↗
  • ECB President Christine Lagarde announced she will leave her post on Feb. 7 next year, ahead of today's ECB decision.CNBC Markets ↗
  • DoorDash agreed to buy Instacart for $17 billion, combining restaurant and grocery delivery platforms; antitrust review is a question.CNBC Top News ↗
  • Caterpillar shares were on track for their worst session in 7 years as non-data-center segments disappointed.MarketWatch ↗

Written with AI from the listed sources and checked automatically. Every number links to its source.