U.S. stock futures slipped on Thursday, with technology stocks trailing behind after a recent period of strong performance. The Dow Jones Industrial Average futures dropped by 79 points, or 0.2%, following a small gain the day before. Similarly, S&P 500 futures and Nasdaq contracts both fell by 0.2%. The yield on the 10-year U.S. Treasury note rose to 4.34%. Analyst Henry Allen from Deutsche Bank noted that markets have been struggling, with bonds selling off and stocks mostly declining. However, there was a bright spot as the Magnificent 7 technology stocks reached a new all-time high.
Investors are eagerly anticipating the release of the Personal Consumption Expenditures (PCE) Price Index on Friday, which is the Federal Reserve’s preferred measure of inflation. The Fed’s inflation outlook and interest rate policies continue to play a major role in market sentiment, with expectations of a potential rate cut by December. Some Fed officials have downplayed the likelihood of a rate cut this year. The upcoming PCE release could be crucial in shaping future rate expectations, especially after concerning data from Australia where the consumer price index surged, leading to speculation of a rate hike.
Investors will also be keeping a close eye on weekly jobless claims, durable goods orders, and pending home sales data from the U.S. Additionally, the first presidential debate between Donald Trump and Joe Biden is scheduled to take place that evening, raising further questions about economic policies and their potential impact on the markets. Market participants are grappling with multiple risks currently, which is making it challenging for markets to build momentum.
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https://www.barrons.com/livecoverage/stock-market-today-062724
