par Ankika Biswas et Lisa Pauline Mattackal
June 27 (Reuters) – The New York Stock Exchange ended slightly higher on Thursday as investors erred on the side of caution ahead of highly anticipated inflation data, with the Nasdaq posting the biggest gains after a report showing a slowdown in economic activity – a factor likely to favor a reduction in interest rates.
The Dow Jones index gained 0.09%, or 36.53 points, to 39,164.33 points.
The broader S&P-500 gained 5.16 points, or 0.09%, to 5,483.06 points.
The Nasdaq Composite rose 53.53 points (0.30%) to 17,858.68 points.
Data released later in the day showed that purchases of U.S. capital goods unexpectedly declined in May, while core durable goods orders fell 0.1% versus a consensus of +0.2%, reinforcing investors’ expectations that the economic slowdown will prompt the U.S. Federal Reserve (Fed) to cut rates in September.
Furthermore, weekly unemployment claims in the United States declined more than expected, while the growth of American gross domestic product (GDP) in the first quarter was revised upwards in final reading.
“The market is a bit in a holding pattern” for the monthly personal consumption report “in the absence of any real catalysts,” Baird analyst Ross Mayfield said of Friday’s release of what is the Fed’s preferred indicator of inflation.
Yields on two-year and 10-year US Treasury bonds, which move inversely to prices, fell after the release of data indicating a prolonged but moderate slowdown in economic activity.
Meanwhile, high-growth stocks like Alphabet and Meta Platforms ended higher. Amazon rose 2.19% after crossing the $2 trillion market capitalization threshold for the first time the day before.
According to FedWatch data from LSEG, most investors continue to anticipate two rate cuts this year, although the Fed says it currently expects only one.
Atlanta Fed President Raphael Bostic wrote in a column on monetary policy that inflation “appears to be tightening” and that should allow for rate cuts. Governor Michelle Bowman, for her part, reiterated that she would not support an easing of monetary policy as long as inflationary pressures remained high.
Note, on the value side, the fall of 7.11% of Micron after a disappointing quarterly turnover forecast, while Nvidia fell by 1.9%.
Walgreens Boots Alliance plunged more than 22% after it cut its annual profit forecast and announced it would close more stores in the United States.
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NYSE Nasdaq Market Summary…… Top 25 Volumes……… Top Gainers in %…….. Top Declines in %…….. Guide to US Stock Market Indices.. Market Statistics……….. 10-Year Benchmark Bond……. Guide to US Sector Indices.. Guide to US Equity Markets… Dow Jones Indices…………. S&P Indices……… Ex-Dividend Values…………. Dow Jones and S&P Forecasts. (Written by Jean Terzian)
