Dow, S&P 500, Nasdaq Gain After Inflation Surprise Calms Investors
Complete. Here is the key summaryU.S. stocks rose as inflation data eased investor concerns. The Dow, S&P 500, and Nasdaq gained after June core PCE increased only 0.1%, below expectations, while Q2 GDP growth slowed to 1.5%. Treasury yields declined with the news. Technology stocks led gains, whereas Lam Research surged nearly 18% and Carvana fell about 13%.
Wall Street stocks advanced Thursday after fresh U.S. economic data showed inflation eased while second-quarter growth came in below expectations.
The Dow Jones Industrial Average climbed about 0.5%, the S&P 500 gained nearly 0.9%, and the Nasdaq Composite rose about 1.7%. Technology stocks led gains among the S&P 500 sectors, while communication services lagged.
The Commerce Department's Bureau of Economic Analysis said core personal consumption expenditures (PCE), the Federal Reserve's preferred inflation measure, increased 0.1% in June from the prior month, below economists' expectations of 0.2%. On an annual basis, core PCE rose 3.3%, matching forecasts. Separately, the agency reported U.S. gross domestic product expanded at a 1.5% annualized pace in the second quarter, below the 2.3% consensus estimate and down from 2.1% growth in the first quarter.
Treasury yields declined following the data, with the two-year yield falling about five basis points to 4.21% and the 10-year yield slipping three basis points to 4.65%.
Among individual movers, Lam Research (LRCX) jumped nearly 18%, while Carvana (CVNA) fell about 13%.