Stocks were mixed on Thursday as Wall Street notched a month of losses. The Dow Jones Industrial Average lost nearly 170 points, while the S&P 500 fell 0.16% and the Nasdaq Composite added 0.11%. All three major averages ended August more than 1.5% lower, with the Nasdaq posting its worst month so far in 2023.
Here's how the market settled on Thursday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
In the spotlight, the Personal Consumption Expenditures (PCE) Index came in-line with expectations on both a headline and "core" basis, the Commerce Department reported Thursday, boosting market optimism that the Federal Reserve will pause its interest rate campaign at its upcoming September meeting.
Headline PCE rose 3.3% on an annual basis, up from 3% in June, while core PCE -- excluding the cost of food and energy -- climbed 4.2% year-over-year compared to 4.1% last month; both in-line will Wall Street expectations, providing another sign inflation is cooling in response to the central bank's hawkish monetary policy. Month-to-month, headline and core PCE rose by 0.2%, matching June's pace.
Traders are currently pricing in a roughly 89% chance the central bank will maintain its benchmark interest rate at a range of 5.25% to 5.50% at its next meeting, according to CME Group's FedWatch tool. Last week, Fed Chair Jerome Powell said at the central bank's Jackson Hole Symposium that policymakers were expecting a hot inflation reading for July, so the month's in-line report helped boost rate-pause sentiment.
In other economic news, initial jobless claims totaled 228,000 for the week ended August 26, the Labor Department reported Thursday, a decrease of 4,000 from the previous week's revised print and below Wall Street expectations. The report comes ahead of Friday's "official" jobs report for August, which is expected to total 170,000 additions as the U.S. labor market continues to show signs of cooling.
On the earnings front, Salesforce
Okta
In stock news, cannabis stocks including Canopy Growth
Apple
Shopify
For Friday, investors will turn their attention to Friday morning's non-farm payroll data release as Wall Street heads towards an extended holiday weekend.