US stocks ticked lower Friday afternoon as the latest reading from a closely watched inflation gauge extended a story of cooling inflation and as investors absorbed the fallout of the Biden-Trump debate.
The S&P 500 (^GSPC) shed roughly 0.2% after the benchmark closed a step nearer to its record high. The tech-heavy Nasdaq Composite (^IXIC) also gave up around 0.2%, while the Dow Jones Industrial Average (^DJI) decreased 0.3%
The gauges are eyeing a downbeat end to a bumpy week that saw the S&P 500 and the Nasdaq come back from a three-day losing streak. While stocks are set to book a stellar first half as they wrap the last trading day of June, those wobbles have fanned fears of a pullback for the rest of the year.
The last significant data point of the first six months of the year came in the form of the Fed’s preferred inflation gauge. Yahoo Finance’s Josh Schafer reported inflation eased in May as prices increased at their slowest pace since March 2021.
The core Personal Consumption Expenditures (PCE) index, which strips out the cost of food and energy and is closely watched by the Fed, rose 0.1 % in May from the prior month, in line with Wall Street’s expectations.
Meanwhile, with November’s US election high on the list of risks, investors took note of President Joe Biden’s weak showing in his first debate against presumptive Republican nominee Donald Trump. The former president’s promised tax cuts and trade clampdown are seen as likely to boost stocks. Shares in Trump Media & Technology Group (DJT) lost 10%.
The market is also on alert for more signs that consumer resilience is losing steam, as key companies flag downbeat prospects for sales. Nike (NKE) stock sank 20% in afternoon trading, while Walgreens (WBA) shares were mostly unchanged on the heels of Thursday’s 22% tumble.
