US stocks post narrow gains ahead of inflation data
Sign up now: Get ST's newsletters delivered to your inbox
Traders working on the floor of the New York Stock Exchange in New York City.
PHOTO: REUTERS
NEW YORK – Wall Street stocks finished a choppy session slightly higher on June 27, as markets looked ahead to US inflation data expected to influence upcoming interest rate decisions.
The June 28 Personal Consumption Expenditures (PCE) price data will come on the heels of a slight upward revision in first-quarter gross domestic product to 1.4 per cent, from 1.3 per cent in the government’s prior report.
The market is “being quite tentative about making an assessment before the actual PCE data is released”, said CFRA Research’s Mr Sam Stovall.
A good inflation reading would “give investors the confidence that maybe the Federal Reserve will start to cut rates sooner rather than later”, Mr Stovall added.
The Dow Jones Industrial Average finished up 0.1 per cent at 39,164.06.
The broad-based S&P 500 also climbed 0.1 per cent to 5,482.87, while the tech-rich Nasdaq Composite Index won 0.3 per cent to end at 17,858.68.
Besides June 28’s data, investors are looking ahead to the June 27 night-time presidential debate featuring President Joe Biden and his predecessor Donald Trump.
Analysts say politics typically has greater influence on markets closer to the November election.
The International Monetary Fund (IMF) trimmed the estimated growth for the US economy in 2024 by 0.1 per cent to 2.6 per cent, noting that shelter inflation has moderated more slightly than expected.
On the positive side, “the US economy has proven itself to be robust, dynamic and adaptable to changing global conditions”, the IMF said.
Among individual stocks, Walgreens Boots Alliance slumped more than 22 per cent as the pharmacy chain lowered its full-year profit forecast, citing “challenging pharmacy industry trends and a worse-than-expected US consumer environment”.
Micron Technology fell 7.1 per cent despite reporting solid profits and higher sales. Briefing.com analyst Patrick O’Hare called the decline a “sell-the-news” response after earlier gains by the chipmaker.
Levi Strauss & Co plunged 15.3 per cent despite reporting an 8 per cent rise in revenue, although that was still less than expected. AFP
