U. S. stocks ended Thursday’s query higher as investors prepare to revise new inflation data in the form of private admissions spending for May, which is expected to be released by the Commerce Department on Friday morning.
Bond yields fell ahead of the new data, with the 10-year Treasury yield falling about two base issues to 4. 292%.
Thursday’s new figures hark back to a downward PCE report, with a second revision to first-quarter GDP looking like a higher expansion than previous early figures, but still particularly lower than in the final quarters of 2023. Jobless claims declined during the week, still holding near a 10-month high.
Friday’s PCE will be decisive as the latest economic data falls short of the threshold for the Federal Reserve to cut rates at its next meeting in July; The markets still expect the first step to be taken in September.
“[W]eakness fails to make the Federal Reserve justify a rate cut in the July 31 decision, especially as the U. S. economy’s return to broader inflation took a deeper decline in the first quarter than expected. “we thought about the past. ” Adams, lead economist at Comerica Bank, said Thursday: “The latest insights point in the right direction, but not enough to convince the Federal Reserve that inflation is being brought under control. “
Federal Reserve officials have taken a more hawkish tone in their recent public comments, and Gov. Michelle Bowman said this week that a rate hike is not out of the question if inflation remains stagnant or rises again.
Chip stocks continued to falter, led by Micron and Nvidia on Thursday. Micron fell after its forecasts failed to impress investors, while Nvidia resumed a sell-off that has wiped billions from its market capitalization since last week.
Meanwhile, meme inventory icon Keith Gill, known as Roaring Kitty on social media, sparked an uptick in Chewy’s inventory after posting a photo of a dog in X.
Here are the US indices at 16:00 (Paris time). Thursday Closing Bell:
Nasdaq Composite: 17,858. 68, up 0. 3%
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