U.S. Equities Wobble Ahead of Inflation Data as Bowman Still Sees Upside Risks
U.S. equity indices wobbled ahead of a key inflation data that could sway the Federal Reserve on the interest rate path.
The $S&P 500 Index(.SPX.US$ swung between gains and losses before closing little changed at 5,482.87 Thursday, while the tech-heavy $Nasdaq Composite Index(.IXIC.US$ gained 0.3% 17,858.68. The $Dow Jones Industrial Average(.DJI.US$ barely budged, ending the trading day at 39,164.06.
The $S&P 500 Index(.SPX.US$ swung between gains and losses before closing little changed at 5,482.87 Thursday, while the tech-heavy $Nasdaq Composite Index(.IXIC.US$ gained 0.3% 17,858.68. The $Dow Jones Industrial Average(.DJI.US$ barely budged, ending the trading day at 39,164.06.
The fate of the S&P 500 has been closely linked to $NVIDIA(NVDA.US$, which slipped 1.9%, as chip maker $Micron Technology(MU.US$'s failure to impress investors with its latestquarterly outlook weighed down on the semiconductor sector. $Taiwan Semiconductor(TSM.US$ , $Broadcom(AVGO.US$, $Intel(INTC.US$ and $NXP Semiconductors(NXPI.US$ declined.
Federal Reserve Governor Michelle Bowman has yet to be convinced that the U.S. inflation has slowed enough for policymakers to start cutting interest rates.
"We are still not yet at the point where it is appropriate to lower the policy rate, and I continue to see a number of upside risks to inflation,” Reuters quoted Bowman as saying in the text of her prepared speech in Stevenson, Washington. "I remain willing to raise the target range for the federal funds rate at a future meeting should the incoming data indicate that progress on inflation has stalled or reversed.”
On Friday, the Bureau of Economic Analysis will release the personal consumption expenditures (PCE) price index for May, helping central bank officials assess the progress of efforts to slow inflation to their 2% target.
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Former editor at Bloomberg, then Lazard Asset Management. Posts aren’t investment advice. Views are just mine.
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