U.S. stocks ended a mixed day on Wednesday as softer-than-expected inflation data and the conclusion of trade talks between the U.S. and the Chinese mainland in London set a cautious tone in the markets. The Dow Jones Industrial Average closed almost flat at 42,865.77, while the S&P 500 dropped 16.57 points (0.27%) to 6,022.24, and the Nasdaq Composite slipped by 99.11 points (0.50%) to 19,615.88.
Earlier, a dip in the U.S. Consumer Price Index (CPI) boosted hopes that the Federal Reserve could ease rates later this year. Headline inflation increased by only 0.1% from April – below the forecasted 0.2% – while core CPI held at 2.8% year-over-year, with monthly gains at 0.1%. These figures even pushed the odds for a September rate cut up to 57.2%, prompting Treasury yields to relax with the 10-year yield easing to 4.41%.
Economists shared mixed views. Bank of America U.S. economist Stephen Juneau remarked, "Combined with the solid May jobs report, the CPI data reduce the chances of a nasty bout of stagflation." In contrast, economist Claudia Sahm cautioned that this report might not fully reveal the economic direction by year’s end.
On the corporate front, the tech sector was in focus. Mega-cap stocks such as Apple and Amazon were down by around 2% each, while Nvidia, Alphabet, and Meta saw declines close to 1%. Intel tumbled 6.46%, leading the decliners, although Broadcom managed a gain of over 3%, and energy stocks rose nearly 1.5% amid higher oil prices.
The overall market mood was a blend of cautious optimism and anticipation – kind of like waiting for the next twist in a binge-worthy series. 🚀 With ongoing trade talks between the U.S. and the Chinese mainland and fresh inflation clues setting the stage, investors are keeping a close eye on what might come next.
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U.S. stocks dip as investors weigh inflation, China-U.S. trade talks
cgtn.com
