S&P 500 Stays Steady as Traders Await Key Inflation Data: Live Updates
The S&P 500 traded near the flatline on Thursday as Wall Street looked ahead to fresh inflation data for clues on when the Federal Reserve might begin to lower interest rates. The broad market index inched up by just 0.1%, reflecting the market’s cautious sentiment.
The Nasdaq Composite added 0.3%, while the Dow Jones Industrial Average gained 112 points, or 0.3%. However, semiconductor stocks were in the red, raising concerns about whether the artificial intelligence trade can continue to sustain markets in the latter half of the year.
Micron shares slipped more than 6% after the chipmaker issued fourth-quarter revenue guidance that was in line with estimates. Similarly, semiconductor giant and market bellwether Nvidia dipped by 1.6%, contributing to the sector’s overall decline.
These movements come as traders anticipate the release of May’s core personal consumption expenditures (PCE) price index, the Fed’s preferred measure of inflation. Economists polled by Dow Jones expect core PCE to have risen 0.1% month over month and 2.6% from the same period last year.
The upcoming inflation data is crucial for market participants as it will provide insights into the Fed’s next moves regarding interest rates. A lower-than-expected increase in the PCE index could signal that inflationary pressures are easing, potentially prompting the Fed to consider rate cuts sooner than anticipated. Conversely, higher-than-expected inflation could delay such decisions, maintaining the current interest rate environment.
As the market awaits this critical data, investors remain vigilant, balancing optimism about economic growth with caution over inflationary trends and their implications for monetary policy.