U. S. stocks ended Thursday’s trading higher as investors prepare to review new inflation data in the form of private admission 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 key, as the latest economic data falls short of the threshold for the Federal Reserve to cut rates at its next meeting in July, with markets still expecting the first move to be made in September.
“[T]he weakness fails to make the Federal Reserve justify a rate cut in the July 31 decision, especially since the U. S. economy’s return to more general inflation had a deeper drop in the first quarter than previously thought in the past. “Adams, chief economist at Comerica Bank, said Thursday: “The latest knowledge points in the right direction, but not enough to convince the Federal Reserve that inflation is being brought under control. “
Federal Reserve officials have struck a more hawkish tone in their recent public comments, with Governor Michelle Bowman saying this week that a rate hike is not out of the question if inflation remains stagnant or rises again.
Chip inventories continued to fall, led by Micron and Nvidia on Thursday. Micron fell after its guidance failed to impress investors, while Nvidia resumed a selloff that wiped billions off its market capitalization since last week.
Meanwhile, meme stock icon Keith Gill, known as Roaring Kitty on social media, sparked a spike in Chewy stock after posting a photo of a dog on X.
Here are the US indices at 16:00 (Paris time). Thursday’s closing bell:
Nasdaq Composite: 17,858. 68, up 0. 3%
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