US Stocks Dip from Record Highs as Key Economic Data Looms: GDP, Jobs, and Inflation in Focus
Staff Editor US Stocks Retreat from Record Highs as Investors Await Economic Data
US stocks pulled back from record highs on Wednesday as investors braced for a series of crucial economic reports in the coming days. The market’s retreat comes as traders anticipate fresh data on GDP, jobless claims, and inflation, which could provide insights into the strength of the US economy and influence future monetary policy decisions.
The Dow Jones Industrial Average fell nearly 300 points, while the S&P 500 slipped about 0.2% from its recent record high. The Nasdaq Composite managed to eke out a small gain, bucking the overall downward trend.
Investors are particularly focused on Thursday’s release of the latest GDP revision for the second quarter and weekly jobless claims, followed by Friday’s Personal Consumption Expenditures (PCE) inflation data – the Federal Reserve’s preferred measure of inflation.
Scott Wren, senior global strategist at Wells Fargo, commented on the economic outlook, noting that while his base case does not include a recession, there are potential risks to consider. These include a slowing economy, the upcoming US presidential election, and increasing geopolitical tensions in the Middle East and Ukraine.
Despite the market’s cautious stance, traders continue to price in significant rate cuts for the coming year. The CME FedWatch tool indicates a 59% probability of another 50 basis point cut in November, suggesting expectations of rapid policy easing.
In the tech sector, all eyes are on Micron Technologies, set to report earnings after the closing bell. The chipmaker’s results will serve as an important indicator for the AI trade, with investors keen to assess the return on massive spending and continued demand for AI tools.
As markets digest these developments, the 10-year Treasury yield rose five basis points to 3.789%, reflecting shifting expectations for future interest rates.
With key economic data on the horizon, investors remain watchful for signs that could shape the market’s trajectory in the coming months.
