Investing.com– US stocks slipped slightly Thursday, after cooling inflation data pointed to a slowing in the U.S. economy even if Federal Reserve interest rate cuts become a possibility later this year.
At 09:35 ET (13:35 GMT), fell 65 points, or 0.2%, dropped 2 points, or 0.1%, and slipped 23 points, or 0.1%.
Cooling CPI points to interest rate cuts
Data released earlier Thursday showed the June Consumer Price Index fell 0.1% on a monthly basis, instead of the expected 0.1% increase forecast. Annually, it increased 3%, lower than the expected 3.1% rise.
The widely-watched core figure, which excludes volatile food and energy components, rose just 0.1% on a monthly basis, and gained 3.3% annually, versus an estimated 3.4% increase.
These figures added to expectations that the Federal Reserve could start cutting rates as soon as September, the next Fed policy-setting meeting.
The main indices on Wall Street rallied on Wednesday, to new record highs, following positive comments from Fed Chair Jerome Powell, who noted recent cooling in the U.S. economy but felt confident there would still be a soft landing for the economy.
Powell, speaking on the second day of his semi-annual Congressional testimony, told lawmakers on Capitol Hill on Wednesday that “more good data” would build the case for the U.S. central bank to cut interest rates.
That said, a number of Fed officials have also expressed caution that they would need more evidence of cooling inflation before they…
