On Thursday, Wall Street saw a minor decline amidst the prevailing gloom that has enveloped the markets, with investors carefully analyzing the latest economic data. Shortly after the opening bell, the S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI) showed a marginal decrease of approximately 0.1%, while the Nasdaq Composite (^IXIC), dominated by tech stocks, saw a drop of 0.3%.
The most recent assessment of second-quarter Gross Domestic Product (GDP) held steady at 2.1%. Concurrently, official figures from the US Department of Labor revealed jobless claims for the preceding week, registering at 204,000—surpassing the anticipated 215,000. Eyes remain trained on the forthcoming release of pending home sales data.
Earlier this week, the Federal Reserve, in its monetary policy statement, signaled a prolonged period of elevated interest rates. This proclamation has since been a source of concern for the markets, even as equities manage to maintain a degree of resilience following days of substantial losses. The 10-year Treasury yield (^TNX) ascended further to 4.6%, nearing levels not observed in over a decade and a half.
Simultaneously, both markets grapple with the weight of surging oil prices, having surged by 35% since the close of June. On Thursday, West Texas Intermediate futures (CL=F) retreated to $92.93 per barrel after touching nearly $95 earlier in the day. Meanwhile, Brent crude futures (BZ=F) also trended lower at $95.91.
The highlight of this week’s data releases is the Friday unveiling of the Personal Consumption Expenditures (PCE) inflation, the Federal Reserve’s preferred gauge for inflation. Some analysts posit that it won’t be sustained inflationary pressures prompting central bankers to take action, but rather the robust spending behavior of American consumers in conjunction with an overheated economy seeking equilibrium.
Individually, chipmaker Micron (MU) faced a downturn in premarket trading subsequent to reporting a first-quarter loss wider than initial projections. The ongoing struggle of Wall Street stems from investors’ careful examination of evolving economic data, the impact of escalating interest rates, and the unpredictable energy market.
Source: Yahoo Finance
