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28/06/24
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U.S. Stocks End Lower
On June 28, stocks in the United States ended on the downside as the early gains vanished while investors were digesting inflation data and weighing political uncertainty after the United States presidential debate. Nike recorded its sharpest decline in a day in over twenty years following a disappointing forecast.
According to the Commerce Department’s report, the headline PCE price index cooled to 2.6 percent from 2.7 percent y/y as well as 0.0 percent m/m relative to April’s rise of 0.3 percent. The core PCE index declined to 0.1 percent on monthly basis, as well as by 2.6 percent on yearly basis.
Likewise, the report highlighted a marginal increase in consumer spending in May, prompting optimism that the Federal Reserve could bring about a much-desired “soft landing” for the economy.
LSEG FedWatch data shows that the probability of the Fed trimming rates in September rose from 61 percent prior to the release of the PCE index data to 68 percent after the release. Traders still see the apex bank delivering two cuts this year despite the Federal Reserve projecting just one cut, with hopes of the inflation rate coming down.
Stocks performance was also influenced by the first debate between President Joe Biden and Donald Trump, according to some analysis. Some megacap stocks were pressured by Treasury yields reversing early losses.
According to Fed Governor Michelle Bowman, the apex bank would follow its own path since inflation has not attained its 2% target.
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