Stock market today: Stocks drift on Wall Street after inflation continues to ease
Investors are hoping that cooling inflation will prompt the
The S&P 500 index was mostly unchanged and is hovering around its all-time high. It remains on track to notch a fourth straight weekly gain. The Nasdaq composite fell 0.2% and is hovering around its all-time high.
The Dow Jones Industrial Average rose 10 points, or less than 0.1%, as of
Consumer prices rose 2.6% in May compared with a year ago, according to the latest personal consumption expenditures index, or PCE. That signaled continued easing from a 2.7% reading in April and is sharply lower than the peak reading of 7.1% two years ago.
“It's moving in the right direction and this is what the Fed needs to make a decision to cut rates,” said
The PCE is the Fed’s preferred measure of inflation and the latest reading is encouraging for economists and investors who are hoping for rate cuts to help ease pressure on the market and borrowers.
Consumers are still feeling pressure from inflation, despite the significant easing from its peak, and recent data has shown that spending is weakening and weighing down economic growth.
“This combination of inflation coming down and consumers being much more careful with spending patterns allows the market to see the possibility of a rate cut in September,” Krosby said.
The strong jobs market has been another big factor driving economic growth, but that has also shown signs of weakening.
Nike tumbled 20.5% after the shoe and athletic wear company missed
Nike's dour outlook dragged other athletic apparel companies down with it.
More retailers, especially those focusing on discretionary items, have been warning about a slowdown in consumer spending. Consumers barely increased spending in May from April, according to the latest government retail sales report.
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AP Business Writers
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