Wall Street Closes Little Changed as Traders Await Key Inflation Report
The stock market on Wall Street closed little changed on Thursday as investors eagerly awaited a key report on inflation that could impact the Federal Reserve’s decision on interest rates. The S&P 500 managed to eke out a 0.1% gain, while the Nasdaq composite rose 0.3% and the Dow Jones Industrial Average closed 0.1% higher.
Despite the overall flat performance of the major indexes, there were notable winners and losers in the market. Retailers and communications services companies saw gains, with Amazon.com rising 2.2% and Meta Platforms adding 1.3%. However, Walgreens Boots Alliance plunged 22.2% after reporting disappointing results and cutting its outlook, leading to the biggest drop in the S&P 500.
Jeans maker Levi Strauss also took a hit, sinking 15.4% after falling short of revenue expectations. On the other hand, spice maker McCormick saw a 4.3% increase in its stock price after beating analysts’ earnings forecasts.
Chipmaker Micron Technology was among the losers, falling 7.1% after its latest forecast failed to meet investor expectations. Treasury yields fell in the bond market, with the yield on the 10-year Treasury dropping to 4.28%.
The latest update on the American economy showed a 1.4% annual growth rate in the first quarter, marking the slowest quarterly growth since spring 2022. Consumer spending also slowed, indicating that consumers are feeling the impact of inflation and high interest rates.
The upcoming release of the personal consumption expenditures index (PCE), the Fed’s preferred measure of inflation, is highly anticipated by economists. The report is expected to show a modest easing of inflation to 2.6% in May, down from 2.7% in April.
Overall, the stock market is on track to finish the month with its fourth straight winning week. The S&P 500 is up nearly 4% for June and about 15% for the year so far. Investors are closely watching for any signs of how the Federal Reserve may adjust interest rates in response to the latest inflation data.