Traders work on the New York Stock Exchange trading floor during afternoon trading on June 3, 2024.
Michael M. Santiago | Michael M. SantiagoGetty Images
this S&P 500 Index It pulled back on Thursday, taking a breather after a rally that pushed the benchmark index to record levels.
The broader market index fell 0.3%, while Nasdaq Index It also fell 0.1%. this Dow Jones Industrial Average It fell 281 points, or 0.7%. Earlier in the day, the S&P 500 was up 0.4%.
The S&P 500 and Nasdaq hit record highs this week, boosted by the latest data showing signs of cooling inflationary pressures.
The industrial producer price index fell by 0.2% quarter-to-quarter in May. Economists polled by Dow Jones expected growth of 0.1%. The report comes a day after May’s consumer price index rose less than expected last month.
Thursday’s data also follows the Federal Reserve’s policy decision. The Fed kept interest rates steady but noted progress on inflation. Despite this, the central bank lowered its forecast for 2024 interest rate cuts to one from the previous three.
“We can remove the possibility of a rate hike from here. That’s what supports equity and credit valuations in our framework,” said Zachary Hill, head of portfolio management at Horizon Investments. “Our base case now is that stocks will continue to Go higher.”
Broadcom share Soared 13% The chipmaker beat fiscal second-quarter earnings estimates and announced a 10-for-1 stock split. on the other hand, Dave and Buster’s Entertainment The company’s shares fell 11% after its first-quarter revenue fell short of expectations.
General Motors and Paramount Worldwide, both fell 6%, leading the S&P lower. The streaming service fell after National Amusements ended discussions about a proposed merger with Skydance. sales force, Amazon and caterpillarDeclines of 2%, 2% and 1% respectively contributed to the decline of the Dow Jones Index.
Revision: Economists polled by Dow Jones expected PPI to rise 0.1%. A previous version misstated this estimate.
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