US stocks edged higher on positive inflation data which showed the Federal Reserve’s preferred gauge eased to the slowest rate since March 2021. The Nasdaq and the S&P 500 added 0.2% at 17,888 points and 5,492 points respectively and the Dow Jones was up 0.1% at 39,206 points. Chipmaker NVIDIA added 1.2% at about $125. US markets have opened mostly flat after key inflation data came in line with estimates, raising hopes for an earlier rate cut this year. The personal consumption expenditures index (PCE), an important gauge of inflation in the eyes of the Federal Reserve, slowed from 2.7% to 2.6% in May, taking it to the lowest level since February 2021. Core PCE, which outstrips volatile food and energy prices, also dropped to 2.6% from 2.8%, the lowest point seen since March 2021. Wall Street is on track to open higher today as the market reacts to Trump and Biden's first presidential debate. Nike is on track to shed close to 15% of its value after it warned that its 2025 full-year revenues would be lower than expected amid a downturn in demand. [5ee37fb6]
US stock futures rose on Friday as a closely watched inflation gauge showed inflation eased in May as prices increased at their slowest pace since March 2021. The core Personal Consumption Expenditures (PCE) index, which strips out the cost of food and energy and is closely watched by the Federal Reserve, rose 0.1% in May from the prior month, in line with Wall Street's expectations and slower than the 0.3% increase seen in April. This data is the marquee event on Friday and investors are watching for any signs that could prompt the Fed to start cutting interest rates. The release of the monthly Personal Consumption Expenditures (PCE) price index is awaited. Meanwhile, shares of Trump Media & Technology Group jumped in pre-market trading following President Joe Biden's weak showing in his first debate with presumptive Republican nominee Donald Trump. Nike shares sank almost 15% in pre-market trading after the company's guidance was a letdown and concerns lingered about its management's execution around product innovation. [1d212fa9]
US stock futures rose ahead of an inflation reading key to Federal Reserve policy. S&P 500 futures advanced roughly 0.4% after the benchmark closed a step nearer to its record high. Contracts on the tech-heavy Nasdaq 100 were also 0.4% higher, while Dow Jones Industrial Average futures hovered above the flatline. The release of May's Personal Consumption Expenditures price index, the Fed's preferred inflation measure, is the marquee event on Friday. Investors are watching for a cooling that could prompt the Fed to start cutting interest rates. Nike shares sank almost 15% in pre-market trading, while Walgreens shares stayed under pressure on the heels of Thursday's 22% tumble. [7265daab]
US stocks were little changed on Thursday as investors assessed fresh economic data ahead of an inflation reading key to Federal Reserve policy. The S&P 500 rose nearly 0.1%, edging back toward an all-time high. The Dow Jones Industrial Average also rose about 0.1%. Meanwhile, the tech-heavy Nasdaq Composite led the gains, gaining 0.3%. Memory maker Micron's shares slid more than 7%, dragging chip stocks. Nvidia was down nearly 2%. Investors were weighing a new batch of economic data ahead of the PCE inflation print on Friday that will influence the Fed's thinking on the timing of interest rate cuts. A reading on initial weekly jobless claims came in at 233,000, a decrease of 6,000 from the previous week, Department of Labor data. Real gross domestic product (GDP) increased at an annual rate of 1.4% in the first quarter of 2024, according to the Bureau of Economic Development. On the corporate front, Levi Strauss shares sank over 15% in the wake of a second quarter revenue miss for the jeans seller. US stocks ended Thursday mostly unchanged as investors awaited upcoming inflation data. The Nasdaq was able to eke out a slight gain after data showed a continued slowdown in economic activity, raising investors' hope for rate cuts. Key stocks showed mixed performances, reflecting market uncertainty. Benchmark yields dropped after the data showed a moderated slowdown in economic activity. Megacap stocks like Alphabet and Meta Platforms firmed as U.S. Treasury yields slipped. The Dow Jones Industrial Average rose 0.09%, the S&P 500 gained 0.09%, and the Nasdaq Composite gained 0.30%. Investors have largely stuck to their view of around two rate cuts this year, even though the Fed has projected only one. Micron fell 7.11% after an in-line fourth-quarter revenue forecast disappointed investors. Walgreens Boots Alliance slumped 22.16% after cutting its 2024 profit forecast and announcing store closures. Denim maker Levi Strauss tumbled 15.4% after falling short of expectations for second-quarter revenue. Advancing issues outnumbered decliners on the NYSE. The S&P 500 posted 9 new 52-week highs and 2 new lows while the Nasdaq Composite recorded 41 new highs and 118 new lows. Volume on U.S. exchanges was 9.49 billion shares. US stocks ended mostly unchanged on Thursday as investors awaited new inflation data. Despite economic indicators showing a slowdown, the potential for Federal Reserve rate cuts kept hope alive. Key U.S. indices saw minor gains, driven by tech giants and a belief in rate adjustments amid slowing economic activity. The Nasdaq was able to eke out a slight gain after economic data showed a continued slowdown in economic activity, raising investors' hope for rate cuts. The release of the monthly personal consumption expenditures (PCE) price index on Friday is awaited. Data showed new orders for key U.S.-manufactured capital goods unexpectedly fell in May, while core durable goods orders fell 0.1% versus forecasts for a 0.2% rise, boosting investor beliefs that a weaker economy could prompt the Federal Reserve to cut interest rates in September. Weekly jobless claims fell to 233,000, missing expectations of 236,000. Benchmark 10- and 2-year yields dropped after the data showed a continued, but moderated slowdown in economic activity. Megacap stocks, such as Alphabet and Meta Platforms, firmed as U.S. Treasury yields slipped. Amazon.com rose after hitting $2 trillion in market value for the first time on Wednesday. The S&P 500 gained 5.44 points, or 0.07%, to end at 5,483.34 points, while the Nasdaq Composite gained 51.99 points, or 0.30%, to 17,857.14. The Dow Jones Industrial Average rose 42.07 points, or 0.11%, to 39,169.87. Micron fell after an in-line fourth-quarter revenue forecast disappointed investors. Nvidia fell. Walgreens Boots Alliance slumped after cutting its 2024 profit forecast and announcing plans to close more underperforming U.S. stores. Denim maker Levi Strauss tumbled after falling short of expectations for second-quarter revenue. Market participants have highlighted concerns over the rally's sustainability and have called out for the need to diversify portfolios to hedge against possible sharp losses. Investors have largely stuck to their view of around two rate cuts this year, even though the Fed has projected only one, and a 59.5% chance of a cut in September. Atlanta Fed President Raphael Bostic said inflation 'appears to be narrowing' and that should allow rates cuts later this year, while governor Michelle Bowman reiterated that she is still not ready to support a central bank rate cut with inflation pressures still elevated. [7265daab]
Major stock indexes on Wall Street closed little changed Thursday as traders looked ahead to a key report on inflation that could influence the Federal Reserve's next move on interest rates. The S&P 500 eked out a 0.1% gain. The Nasdaq composite rose 0.3% and remains just below its all-time high. The Dow Jones Industrial Average closed 0.1% higher. Gains in retailers and communications services companies helped outweigh losses in consumer goods makers, financial stocks and elsewhere in the market. Walgreens Boosts Alliance plunged 22.2% for the biggest drop in the S&P 500. Jeans maker Levi Strauss sank 15.4% after its latest quarterly revenue results fell short of analysts' expectations. Spice maker McCormick rose 4.3% after beating analysts' earnings forecasts. Chipmaker Micron Technology fell 7.1% after its latest forecast left investors disappointed. The yield on the 10-year Treasury fell to 4.28% from 4.33%. The yield on the two-year Treasury fell to 4.71% from 4.75%. The American economy expanded at a 1.4% annual pace from January through March, the slowest quarterly growth since spring 2022. Consumer spending grew at just a 1.5% rate. The main upshot from the report is that "the economy remained resilient in the first quarter but that private sector demand growth was cooling, led by more consumer prudence," said Gregory Daco, EY chief economist. Economists expect the next influential inflation report to show a modest easing of inflation to 2.6% in May. The S&P 500 is on pace to notch its fourth straight winning week, up just under 4% for June and up about 15% so far this year.