Wall Street stocks were mixed Thursday afternoon after fresh data on the Federal Reserve’s target inflation rate suggested.
The Dow Jones Industrial Average ( ^DJI ) fell 0.15%, or about 50 points, although it was bought by a jump in Salesforce shares ( CRM ) after the software giant’s AI-fueled earnings beat. The S&P 500 (^GSPC) edged above the flat line, up 0.08%, while the tech-heavy Nasdaq Composite (^IXIC) gained roughly 0.3%.
Thursday’s update to the personal consumption expenditures (PCE) index showed that the Fed’s preferred rate of inflation rose in July, with both headline and “core” readings in line with expectations.
“Inflationary pressures continue to moderate despite the apparent strength of real demand,” Paul Ashworth, economist at Capital Economics, said in a note to clients.
As investors took heart from signs of a soft landing for the U.S. economy in this week’s clutch of data, stocks are expecting a fifth straight day of closing August losses. This is fueling bets that the Fed may ease interest rates at its upcoming September meeting.
Meanwhile, US jobless claims fell to 228,000 last week, beating expectations for 235,000, according to data released Thursday. That set the stage for Friday’s August jobs report, which is seen as key to the Fed’s decision to temper inflationary pressures.
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Correction: An earlier version of this article listed the wrong job title for Capital Economics economist Paul Ashworth. We are sorry for the mistake.