The Bureau of Economic Analysis is scheduled to release the PCE index, a key measure of inflation closely monitored by the Federal Reserve, on Thursday at 8:30 a.m. ET. The PCE index is favored by the Federal Reserve as it provides a more comprehensive assessment of price changes for a wide range of goods and services compared to the popular CPI basket. According to the CME Group’s FedWatch tool, investors are currently predicting a 78% chance of a rate increase by May 2024, and there is speculation of up to five rate cuts by December 2024 with a 56% probability. Economists’ expectations for the October PCE report include a decrease in the year-on-year increase of the headline PCE price index from 3.4% to 3%, a month-over-month increase of 0.1% in the headline PCE price index, a decrease in the year-on-year increase of the core PCE price index from 3.7% to 3.5%, and a slight acceleration in the monthly increase of the core PCE price index from 0.3% to 0.2%. Additionally, investors should keep an eye on various ETFs, such as the iShares 20+ Year Treasury Bond ETF, Invesco QQQ Trust, SPDR Gold Trust, Cathie Wood’s ARK Innovation ETF, and Roundhill Magnificent Seven ETF.