The stock market saw some ups and downs on Friday as investors reacted to the latest inflation data. Despite excitement over the PCE report, US indexes ended the day lower. Both headline and core personal consumption expenditure readings came in at 2.6% year-to-year, marking a significant drop from the previous month.
The stock market had a strong first half of 2024, with the S&P 500 up nearly 15%. However, the Dow only managed a 4% gain, while the Russell saw a modest 1% increase. This has raised concerns about market leadership in the second half of the year.
One of the key takeaways from the recent market activity is the bifurcation of the market, where only a few stocks are driving index gains. Additionally, concerns about the economy’s slowdown, along with Nvidia’s $430 billion drop, have added uncertainty to the market.
Despite the soft inflation data, investors are still optimistic about potential interest rate cuts this year. Futures markets are currently pricing in the likelihood of two rate cuts in the near future.
In other financial news, West Texas Intermediate crude oil dropped to $81.3 a barrel, while Brent crude slipped to $84.77 a barrel. Gold prices also saw a slight decrease, falling to $2,326 per ounce. The 10-year Treasury yield jumped to 4.349%, and Bitcoin remained relatively stable at $60,809.21.
Overall, the market is facing a mixed bag of indicators, with some sectors performing well while others lag behind. Stay tuned for more updates and analysis on market trends and investment opportunities. Join Extreme Investor Network to stay ahead of the curve and make informed investment decisions.