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 today showed that purchases of US capital goods fell unexpectedly in May, while orders for core durable goods fell 0.1% versus a consensus of +0.2%, reinforcing among investors the hypothesis that the economic slowdown will push the American 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 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 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.
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.
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.
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(Written by Jean Terzian)
