The stock market took a hit on Thursday as investors braced for upcoming inflation data that could impact the market in the coming months. Despite a brief technical glitch that temporarily halted updates to the S&P 500 and Dow Jones Industrial Average, both indexes ended the day in the red.
The Dow closed down 330 points, marking its third consecutive daily decline, while the S&P 500 fell by about 0.6%. Shares of Salesforce were a major drag on the Dow after the company reported its first revenue miss in nearly two decades, causing its stock to plummet by 20%.
Looking ahead, the Bureau of Economic Analysis is set to release the personal consumption expenditures price index on Friday, with economists predicting a 2.7% year-over-year increase in April. Bond yields also dropped following revised GDP data for the first quarter and an uptick in jobless claims, fueling speculation that the Federal Reserve may consider cutting rates later this year.
Despite the economic indicators pointing towards slower growth and inflation, some analysts believe that underlying strength in the economy may be overlooked. Barclays noted that metrics like private domestic final purchases could provide a more accurate picture of consumer and business demand.
In commodities, West Texas Intermediate crude oil and Brent crude both saw declines, while gold prices dipped slightly. The 10-year Treasury yield also fell, while Bitcoin experienced a modest increase.
As investors navigate the uncertainty in the market, all eyes will be on the upcoming inflation data and how it may influence the Federal Reserve’s monetary policy decisions in the months ahead.
