Stock market today: S&P 500 retreats from record as US futures slip ahead of key inflation data
US stocks paused near record highs on Wednesday as investors waited for a reading on the Federal Reserve’s favorite inflation gauge to provide clues to the path of interest rates.
S&P 500 futures (ES=F) and Dow Jones Industrial Average futures (YM=F) were little changed, coming off fresh all-time highs for the indexes. Contracts on the tech-heavy Nasdaq 100 (NQ=F) fell 0.3%.
The mood is muted in the wind-down to the Thanksgiving holiday, which will see markets shut on Thursday and close early on Friday. But the Fed is taking the fore again after being eclipsed somewhat by debate over the impact of Donald Trump’s tariff plans and cabinet choices.
The October print of its preferred inflation gauge, the Personal Consumption Expenditures index, is due for release on Wednesday morning. Focus is on whether inflation has stalled, as some officials believe, and minutes from the Fed’s last meeting suggested a cautious stance on interest-rate cuts.
Economists expect annual “core” PCE — which excludes food and energy — to have clocked in at 2.8% in October, up from the 2.7% seen in September. A print matching those expectations will likely weigh on bets for a rate cut in December. Traders currently see a roughly 34% chance the Fed holds rates steady at that meeting, up from a roughly 24% a month before, per the CME FedWatch Tool.
Also out Wednesday, the second estimate of third quarter GDP was unchanged, showing the US economy grew at an annualized rate of 2.8% in the period. Meanwhile, weekly jobless claims continued to move lower with 213,000 unemployment claims filed in the week ending Nov. 23, down from 215,000 the week prior.
Trump on Tuesday tapped Jamieson Greer — a veteran of his first term — as US trade representative. Given Greer was heavily involved in Trump’s original China tariffs, Wall Street is assessing what his role could mean for the big new tariffs promised for the US’s top trading partners.
On the corporate front, Dell (DELL) shares sank over 10% after quarterly revenue fell short amid flagging PC demand. Peer HP’s (HPQ) stock also fell post-earnings, down 8%.
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