Traders work on the floor of the New York Stock Exchange during afternoon trading on June 3, 2024.
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The S&P 500 rose Thursday after investors got more economic data indicating inflation pressures are easing.
The broad market index climbed 0.3%, while the Nasdaq Composite advanced 0.7%. The Dow Jones Industrial Average slipped 156 points, or 0.4%.
May’s producer price index fell 0.2% from the prior month. Economists polled by Dow Jones expected an increase of 0.1%. That report comes a day after May’s consumer price index rose less than expected last month.
Thursday’s data also follows a Federal Reserve policy decision. The Fed kept rates unchanged, but noted there has been progress made on the inflation front. That said, the central bank lowered its rate cut expectations for 2024 to one from its prior estimate of three.
“The Fed unsurprisingly left policy unchanged but continues to just about keep the door open to rate cuts this year,” wrote James McCann, deputy chief economist at abrdn. The “downside surprise in CPI inflation was more encouraging, and with most members split between one or two cuts we wouldn’t be surprised to see market pricing continue to flirt with multiple rate cuts this year.”
Broadcom shares surged 13% after the chipmaker topped fiscal second-quarter expectations and announced a 10-for-1 stock split. On the other hand, Dave & Buster’s Entertainment shares dropped 7% after the company’s first-quarter revenue missed estimates.
Wall Street is coming off a strong session for the S&P 500 and Nasdaq Composite, with each benchmark hitting all-time highs and closing at records.
Correction: Economists polled by Dow Jones expected PPI to rise by 0.1%. A previous version mischaracterized the estimate.
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