The last session of the week ended with a fall Wall Street, as traders digested new economic statistics that showed a slowdown in the inflation rate as well as better-than-expected data on consumer sentiment. However, the first half ending today in the markets was particularly strong.
O S&P 500 fell 0.41% to 5,460.48 units, while Nasdaq fell 0.71%, to 17,732.60 points. Both indices reached an intra-session all-time high before retreating. O Dow Jones Index also fell 45.20 points or 0.12% to 39,118.86.
Inflation in May grew at the slowest annual rate in more than three years, according to the Personal Consumer Spending Index. The structural index, which excludes food and energy prices, rose just 0.1% month-on-month and 2.6% year-on-year. Both metrics were in line with analyst expectations. The structural indicator is the one closely watched by the Fed regarding the path of inflation. The main index, which includes energy and food prices, remained stable for the month and rose 2.6% year on year, in line with analysts’ expectations.
Meanwhile, the University of Michigan’s consumer confidence index showed a bigger-than-expected improvement in July, rising from 65.6 to 68.2.
Investors are giving the central bank a 60% chance of cutting interest rates in September, according to CME Group.
In the first semesterthe Nasdaq gained 18.1% on AI. The S&P 500 gained more than 14%, while the Dow Jones posted smaller gains of about 4%. The Dow’s underperformance was due to a 1.7% drop in the second quarter, while the S&P 500 and Nasdaq gained 3.9% and 8.3%, respectively, over the same period.
However, all three indices moved in Junewhich is the seventh positive month in the last eight. The Nasdaq once again led the way higher with gains of over 6%. The S&P 500 gained 3.5% and the Dow gained 1.1%.
For the week, the Nasdaq rose 0.2%, while the S&P 500 and Dow both fell less than 0.1%.
“The market has been particularly resilient in the first half of the year. But to achieve even higher levels in the second half of the year, more participation will be needed. In addition, events such as the US presidential election, the timing of interest rate cuts and signs of slowing consumer demand could weigh on markets,” said John Tyner, portfolio manager at Aptus Capital Advisors.