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11/07/24
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Wall Street Lower Despite CPI Data Cooling
On Thursday, stocks on Wall Street dropped slightly, after easing inflation data indicated the U.S. economy was slowing even if Federal Reserve interest rate cuts become possible later in the year.
The NASDAQ Composite slipped 23 points or 0.1%, the S&P 500 dropped 2 points or 0.1%, and the Dow Jones Industrial Average fell 65 points or 0.2%.
Data released on Thursday showed the CPI for June declined 0.1% on a monthly basis, instead of the 0.1% gain expected. It rose 3% annually, lower than the expected 3.1% increase.
The core number, which excludes volatile energy and food prices, only gained 0.1% on a monthly basis, and rose 3.3% annually, versus an estimated increase of 3.4%.
Those numbers added to expectations that the Fed may start cutting rates in Sept., at the next policy-setting meeting of the Fed.
On Wednesday, the major indices on Wall Street rallied to new record levels after positive comments by Fed Chair Jerome Powell, who said although the U.S. economy had eased recently, he was confident the economy would still land softly.
Powell told lawmakers that more positive data would build the case for the Fed to reduce interest rates.
Several Fed officials have also said that they required more evidence of inflation cooling before voting for cuts.
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