A sign pointing to Wall Street in New York
par Ankika Biswas et Lisa Pauline Mattackal
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 indicating a slowdown in economic activity – a factor capable of favoring 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 advanced 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.
Separately, weekly U.S. jobless claims declined more than expected, while first-quarter U.S. gross domestic product (GDP) growth was revised upwards in the final reading.
“The market is a little waiting” for the monthly report on personal consumption “in the absence of real catalysts”, commented Ross Mayfield, analyst at Baird, about the publication Friday of what constitutes the preferred indicator by the Fed regarding inflation.
Yields on two-year and 10-year U.S. Treasury bonds, which have curves that are inverse to those of prices, fell after data showed a prolonged but moderate slowdown in economic activity.
At the same time, high-growth stocks, such as Alphabet and Meta Platforms, finished higher. Amazon increased by 2.19% after crossing the threshold of $2,000 billion in market capitalization for the first time the day before.
According to FedWatch data from LSEG, investors largely 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.
On the stock front, Micron fell 7.11% after a disappointing quarterly revenue forecast, while Nvidia fell 1.9%. Walgreens Boots Alliance plunged more than 22% after a downward revision to its annual profit forecast and the announcement of additional store closures in the United States.
text_section_type=”notes” For further information, please click on the following codes: NYSE Nasdaq Market Summary……….. 25 Highest Volumes……….. ……. Largest increases in %…………… Largest declines in %…………… Index guide American stock exchanges…. Market statistics…………………… 10-year benchmark bond………… .Guide to US Sector Indices…Guide to US Stock Markets……Dow Jones Indices…………………….. Indices S&P…………….. Ex-dividend values…………………… Forecasts for the Dow Jones and the S&P..
(Written by Jean Terzian)
