U.S. Stocks Fall Friday, But Still End Stong First Half of 2024. Thanks to AI | Wall Street Today

U.S. stocks fell on Friday as traders reacted to PCE data showing slowing inflation and better-than-expected consumer sentiment data. However, they still had a strong first half in 2024.

The S&P 500 climbed 14.5% in the first half of the year. The AI-driven trades boosted the techy-heavy Nasdaq Composite to an 18.1% gain in the first half of 2024, and the Dow Jones Industrial Average advanced 3.8% in the same period.

The Fed's preferred gauge of inflation, the personal consumption expenditures (PCE) price index that excludes food and energy slowed to 2.6% in May, from 2.8% in April, the Bureau of Economic Analysis said in a report Friday morning. That's in line with expectations from economists surveyed by the Wall Street Journal.

A separate report, this time from the University of Michigan, showed year-ahead inflation expectations fell from 3.3% last month to 3.0% this month. Long-run inflation expectations came in at 3% for the third consecutive month and have remained remarkably stable over the last three years, Joanne Hsu, surveys of consumers director said in a report released Friday morning. While the university's consumer sentiment index down to 68.2 in June, from 69.1 a month earlier, the gauge is still about 36% above the trough seen in June 2022, Hsu said.

Oil settled little changed after retreating from a nearly two-month high as traders weighed a swelling supplies against escalating Mideast tensions. West Texas Intermediate crude fell 0.2% to near $81 a barrel.

Nike stock sinked 19% after the company forecasts sharper sales drop for 2025.