Chicago FinTech TV correspondent Mark Newton is live from the trading floor. Good morning, Mark. Thank you so much for joining us. So a lot of economic data to sift through. And we're keeping our eyes on Fed rate hike expectations as well. So what are you seeing in the premarket activity?
Philip took the vibe out. Beautiful picture.
Yeah. Good morning. We're seeing a positive move in the premarket following the economic data that you just covered. S&P 500 futures are up about 4/10 of a percent. And we saw futures move higher pretty quickly following those numbers that were released today here at Stephen. I'm also keeping an eye on the VIX to see how volatility responds as traders digest the data.
And we get closer to the opening bell. Right now the VIX is around the high 15 right now. Treasury yields remain elevated with the 10 year still above 5%. So that continues to be a big part of the story for equities. Oil is another one to watch. WTI is trading around $90 a barrel with energy prices remaining elevated and continued concerns over global supply.
So right now stocks are responding positively to this morning's economic data. But traders are still keeping a close eye on rates and oil as we head toward the opening bell.
Yeah, and indeed, Mark will be paying attention to not just the futures prices this morning, but also what happens in terms of yields. And it is a big week for economic data here in the U.S. We may have gotten that PCE figure as well as ADP. But the big jobs report is on Friday and we still have time until we get to that October Federal Reserve meeting.
So how are traders reacting to the latest data, and what are you seeing in terms of shifting expectations when it comes to the rate outlook?
Yeah, I think the inflation number is probably the big one for markets. This morning we got both reports from the U.S. Bureau of Economic Analysis. So starting with PCE, the Fed's preferred measure of inflation, year over year PCE came in at 3.4%, cooler than the 3.7% economists were expecting. On a monthly basis, PCE increased 3/10 of a percent, also slightly below expectations.
And core PCE, which takes out food and energy, came in at 3% year over year compared with the 3.3% forecast. So inflation is still above the Fed's 2% target. But these numbers came in cooler than expected. Then we also got a pretty significant update on economic growth. Second quarter GDP was revised up to a 2.2% annualized growth rate.
That's up from the previous estimate of 1.5%. So when you put those reports together, you've got cooler than expected inflation, while at the same time the economy was stronger than we previously thought. And at least initially, Wall Street seems to like that combination. We've seen stock futures move higher following the numbers.
So now we'll wait and see if that holds as we get closer to the opening bell. Remy.
And indeed we will be checking in with you later this morning. So let's see what happens after the market opens. Well, thank you so much for your insights, Mark. And have a good morning.
Thank you, Remy.
