The S&P 500 Index ($SPX) (SPY) today is up +0.26%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.24%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.31%.
Stock indexes today are moderately higher, with the S&P 500 and Nasdaq 100 posting new all-time highs as easing US price pressures knocked T-note yields lower and bolstered the chances of Fed interest rate cuts this year. Today’s economic news showed the US May core PCE deflator, the Fed’s preferred inflation gauge, eased +2.6% y/y from +2.8% y/y in April, right on expectations and the slowest pace of increase in 3 years. Strength in chip stocks today is also boosting the overall market.
Stocks also have support on quarter-end window dressing as stock fund managers buy stocks that performed well this quarter to put into their portfolios with today the last trading day of Q2.
Stock indexes fell back from their best levels today after stronger-than-expected US economic reports on Jun MNI Chicago PMI, and the University of Michigan Jun consumer sentiment index pushed T-note yields higher.
Comments today from Richmond Fed President Barkin were slightly hawkish when he said, “Given the remarkable strength we are seeing in the economy,” he is open to the idea that the longer run rate that keeps supply and demand in balance “has…
