US GDP expanded at its fastest pace in a year in the third quarter, while September PCE inflation rose 0.5 percent, the largest monthly gain in six months, combining robust growth with re-accelerating price pressure. The inflation print feeds directly into the rate-differential channel, as firmer price data reduces the likelihood of near-term Federal Reserve easing and tends to support the dollar relative to peers whose policy outlooks are less hawkish. Equities with long-duration earnings profiles are most sensitive to this repricing, since higher expected rates compress the present value of distant cash flows. Amazon's after-hours decline on elevated AI capital spending reflects investor concern that heavy infrastructure outlays may pressure near-term margins, while Intel's fall on softer revenue guidance points to weakness in its core semiconductor franchise, with both moves tying into broader sensitivity around technology capex. The next catalyst to watch is the upcoming Fed communication and subsequent inflation releases, which will determine whether the September reading marks a trend shift or a one-month anomaly.
US GDP GREW AT ITS FASTEST PACE IN A YEAR IN Q3, WHILE SEPTEMBER PCE INFLATION ROSE 0.5%, ITS BIGGEST MONTHLY INCREASE IN SIX MONTHS. AMAZON SLUMPED AFTER HOURS ON HIGHER AI SPENDING, AND INTEL FELL ON A WEAKER REVENUE OUTLOOK.
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