The S&P 500 Index posted its fourth straight record close on Thursday as traders reacted to more encouraging economic data for May. The broader market index rose over 0.2%, while the Dow Jones Industrial Average slipped over 60 points and the Nasdaq Composite advanced 0.3%.
Here's how the market settled on Thursday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
In Economic News:
The Producer Price Index (PPI) unexpected declined in May, the Bureau of Labor Statistics reported Thursday, adding to building market optimism on recent data showing inflationary pressures are easing across the U.S. economy.
Wholesale prices, measured by the prices producers pay for their goods and services, decreased by 0.2% month-over-month and rose 2.2% annually. The monthly rate reversed April's 0.5% increase and came in below expectations.
On a core-basis, excluding food, energy and trade service prices, May's monthly rate was unchanged, also coming in below estimates for a 0.3% increase.
"The May CPI and PPI data are favorable for our view that the Fed will be reducing its policy rate later this year," said Stephen Juneau, economist at Bank of America, in a Thursday note, quoted by CNBC. "We see recent inflation data as greatly reducing the likelihood that the Fed has to raise rates and view labor market data as indicating that the probability of fast rate cuts is also low."
Initial Unemployment Claims rose by 13,000 week-over-week to 242,000 for the week ended June 8, the Labor Department reported Thursday, marking its highest level since August 2023. Continuing jobless claims, which are tracked a week behdine, also rose to a total of 1.82 million.
On the Earnings Front:
Broadcom
"Talking of AI accelerators, you may know our hyperscale customers are accelerating their investments to scale up the performance of these clusters," CEO Hock Tan said during the company earnings call on Wednesday, as the company posted $3.1 billion in AI-related sales during the quarter. "And to that end, we have just been awarded the next-generation custom AI accelerators for these hyperscale customers of ours."
Automaker Headlines:
Tesla
Ford
Stellantis
For Friday:
Market participants will turn their attention towards a series of Fedspeak as well as May's preliminary consumer sentiment reading.