The last session of the week ended in fall Wall Street, as traders digested new economic statistics showing a slowdown in inflation, as well as better-than-expected consumer sentiment data. However, the first half ended today in the markets very strongly.
THE S&P 500 fell 0.41% to 5,460.48 units, while Nasdaq fell 0.71% to 17,732.60 points. Both indices touched an intra-session all-time high before retreating. THE Dow Jones also decreased by 45.20 points or 0.12% to 39,118.86.
Inflation in May grew at the slowest annual rate in more than three years, according to the personal consumer spending index. The structural index, which excludes food and energy prices, rose just 0.1% month-on-month and 2.6% year-on-year. Both metrics were in line with analysts’ expectations. The structural indicator is closely monitored by the Fed for the path of inflation. The headline index, including energy and food prices, was flat in the month and rose 2.6% year-on-year, in line with analysts’ expectations.
Meanwhile, the University of Michigan’s consumer sentiment index showed a larger-than-expected improvement in July, rising to 68.2 from 65.6.
Investors are giving a 60% chance that the central bank will cut interest rates in September, according to CME Group.
In the first semester, the Nasdaq gained 18.1% in artificial intelligence. The S&P 500 gained more than 14%, while the Dow Jones posted smaller gains of about 4%. The fact that the Dow underperformed the other two indexes is due to a 1.7% drop in the second quarter, while the S&P 500 and Nasdaq gained 3.9% and 8.3% respectively during the same period.
However, all three indices moved in June, which is the seventh positive month in the last eight. The Nasdaq once again led the rally with gains of more than 6%. The S&P 500 gained 3.5% and the Dow gained 1.1%.
For the week, the Nasdaq rose 0.2%, while the S&P 500 and Dow declined less than 0.1%.
“The market proved to be very stable in the first half. But in order for it to reach even higher levels in the second half, it will require more participation. Also, events such as the US presidential election, the timing of interest rate cuts and signs of softening consumer demand could weigh on markets,” said John Tyner, portfolio manager at Aptus Capital Advisors.