Stocks Rise After Personal Consumption Expenditure Data Points to Slowing Inflation: Stock Market News Today

Stocks on Wall Street were mixed on Thursday afternoon after fresh data indicated an easing of inflation that the Federal Reserve is looking at.

The Dow Jones Industrial Average (^DJI) fell 0.15%, or about 50 points, even as it was supported by a jump in Salesforce (CRM) shares after the AI-powered software giant’s earnings beat. The S&P 500 (^GSPC) rose just above the flat line, adding 0.08%, while the technology-capped Nasdaq Composite (^IXIC) added about 0.3%.

Thursday’s update to the Personal Consumption Expenditure (PCE) index showed that the Fed’s preferred measure of inflation rose in July, with headline and core readings matching expectations.

“Despite the apparent strength of real demand, inflationary pressures have continued to ease,” Paul Ashworth, an economist at Capital Economics, wrote in a note to clients.

Stocks are eyeing a fifth consecutive day of gains to close a losing month in August, as investors take heart from signs of a soft landing for the US economy in this week’s data set. This motivates bets that the Fed may ease up on rate hikes at its next meeting in September.

Meanwhile, US jobless claims fell to 228,000 last week, below the forecast of 235,000, according to official figures released on Thursday. This sets the stage for Friday’s August jobs report, which is seen as key to the Fed’s decision-making in its mission to ease price pressures.

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Correction: An earlier version of this article listed the incorrect workplace for Capital Economics economist Paul Ashworth. We apologize for this error.

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