After four straight days of gains, stocks dipped on Thursday as Wall Street prepared to close out a challenging month.
The Dow dropped around 0.5%, or about 170 points. The Nasdaq Composite rose 0.1% while the S&P 500 decreased by 0.1%.
Investors have just experienced a successful day, as the S&P 500, Dow, and Nasdaq have all posted four straight days of gains. These increases assisted in cutting the monthly losses of the major indices. Although all three benchmarks have lost more than 1% so far this month, they have recently trended higher as traders anticipate a rally in late August.
The latest data on U.S. inflation were examined by traders on Thursday. According to estimates from experts surveyed by Dow Jones, the core personal consumption expenditures index rose 0.2% month over month and 4.2% year over year in July. The Federal Reserve pays special attention to the core PCE as a measure of inflation.
A prolonged decrease in U.S. Treasury yields is the keystone in the bridge for greater upside in stocks, at least in the near term, according to Joseph Cusick, senior vice president at Calamos Investments. “At the end of the day, equities are following bonds,” he added. “Holiday-induced liquidity conditions are starting to set in ahead of Labour Day, barring a surprise outcome from the August U.S. nonfarm payrolls report on Friday.”
Source (CNBC)
