Stocks closed with mixed results on Wednesday as investors weighed the impact of a key inflation report and the Federal Reserve’s latest projections for interest rate cuts. The Dow dropped 35 points, or 0.1%, while the S&P 500 gained 0.9% and the Nasdaq Composite surged 1.5%, achieving record-high closes for the third consecutive day.
Investor sentiment was buoyed by the May Consumer Price Index report, which revealed that inflation moderated at a slower rate than expected. The report from the Bureau of Labor Statistics indicated a 3.3% year-over-year increase in consumer prices, a slower pace than April’s 3.4% rate. Additionally, prices remained unchanged on a monthly basis, decelerating from April’s 0.3% gain.
Following the Federal Reserve’s decision to maintain unchanged interest rates and its indication of a single cut forecast before the year concludes, U.S. Treasury yields witnessed an increase on Thursday.
The market reaction reflected investors’ cautious optimism amid evolving economic data and the anticipated impact of the Federal Reserve’s policy.
