Stocks are in a holding pattern as Wall Street awaits the la...

Stocks are in a holding pattern as Wall Street awaits the latest inflation data on Friday with the release of May's personal consumption expenditures price index. Investors hope the report will show easing pricing pressures that could cement the likelihood the Fed will lower interest rates later this year.

Investors are deliberating whether the artificial intelligence trade can continue to sustain markets in the back half of this year, or if the rally will need to broaden out. Strategists anticipate the S&P 500 will likely end the year not even 1% higher from current levels.

"Right now, we're in this environment where the market is sort of aligned with the Fed," Brian Levitt, global market strategist at Invesco said on Wednesday. "And what you'll need likely is greater expectation coming into this market that the inflation story is really behind us, that the Fed can lower rates, and the soft landing happens."

Corporate earnings continue Thursday with releases from Walgreens Boots Alliance and Nike.

On the economic front, traders will also watch for the latest reading of weekly jobless claims, durable goods orders and pending home sales.