Stock Market Falls After PCE Inflation Data; Celsius Stock Spikes on PepsiCo Deal

The Dow Jones Industrial Average fell nearly 0.5%, the S&P 500 fell about 0.7%, and the tech-heavy Nasdaq Composite led the decline, down 1%.

The core PCE index rose 0.3% on a monthly basis and 2.9% annually, matching expectations but remaining above the Fed's 2% inflation target. Why does this matter? Higher inflation generally reduces the likelihood of the Fed cutting interest rates.

Despite Friday's pullback, the major indexes were on track for their longest streak of consecutive monthly gains in over a year.

PepsiCo increased its stake in Celsius to 11%. Celsius will acquire PepsiCo's Rockstar brand in the US and Canada as part of the deal. Celsius stock popped 6.7% in premarket trading.

Marvell Technology (MRVL) stock tumbled almost 13% after the chipmaker's forecast for data-center-related demand fell short of expectations.

Dell Technologies (DELL) stock fell 6% due to a gloomy quarterly profit forecast.

Affirm (AFRM) shares soared 15% after the company turned a profit in its fourth quarter fiscal earnings.

Alibaba (BABA) stock rose more than 2% after reporting a surge in revenue from China’s AI boom.

Q: What is the PCE index?

Q: Why did Celsius stock spike?

Monitor inflation data and Fed announcements for insights into potential interest rate changes.

Be aware of individual stock movements driven by company-specific news and broader market trends.

Consider how PepsiCo's investment in Celsius might impact the energy drink market.