Wall Street closed little changed on Thursday as traders eagerly awaited a key report on inflation that could impact the Federal Reserve’s decision on interest rates. The S&P 500 managed a slight 0.1% gain, while the Nasdaq composite rose 0.3% and the Dow Jones Industrial Average closed 0.1% higher.
Retailers and communications services companies saw gains, with Amazon.com rising 2.2% and Meta Platforms adding 1.3%. However, Walgreens Boots Alliance suffered a 22.2% plunge after reporting disappointing results and cutting its outlook. Levi Strauss also took a hit, sinking 15.4% due to revenue results falling short of expectations.
On the positive side, spice maker McCormick rose 4.3% after beating earnings forecasts, while chipmaker Micron Technology fell 7.1% following a disappointing forecast.
The bond market saw Treasury yields fall, with the 10-year Treasury yield dropping to 4.28%. The latest government update showed the American economy expanding at a 1.4% annual pace in the first quarter, with consumer spending growing at a slower rate due to inflation and high interest rates.
Economists are anticipating a modest easing of inflation to 2.6% in May, which could impact the Federal Reserve’s decision on interest rates. Wall Street is predicting a rate cut at the September meeting.
Despite the uncertainty surrounding inflation, the S&P 500 is on track for its fourth consecutive winning week, with gains of nearly 4% for June and about 15% for the year. Overall, the S&P 500 rose 4.97 points to 5,482.87, the Dow added 36.26 points to 39,164.06, and the Nasdaq gained 53.53 points to close at 17,858.68. Investors will be closely watching Friday’s inflation report for further insights into the market’s direction.
