US Stocks Dip After Record Highs, Fed President Welcomes Disinflation Data
US stocks took a breather on Friday after the S&P 500 and Nasdaq 100 reached record highs four days in a row. Outgoing Fed President Loretta Mester told CNBC that recent disinflation data was welcomed by investors.
The surge in stocks this week was fueled by a marked cooldown in inflation, as evidenced by the consumer price index and producer price index reports for May. However, Friday’s decline in stocks was preceded by a sharp drop in European stocks, as election results in France and Germany continued to make waves.
Investors are now turning their attention to the release of preliminary consumer sentiment data from the University of Michigan, with economists expecting a reading of 71.5. Additionally, comments from Federal Reserve Presidents Loretta Mester and Austan Goolsbee will be closely monitored later in the day.
Mester emphasized the importance of not waiting too long to cut interest rates, as the market currently expects the Fed to begin cutting rates at its September FOMC meeting.
In commodities, bonds, and crypto, West Texas Intermediate crude oil rose to $78.98 a barrel, while gold edged higher to $2,345.20 per ounce. The 10-year Treasury yield dropped, and Bitcoin rose to $67,236.
Overall, the market remains volatile as investors navigate the impact of recent economic data and political developments both domestically and abroad.
