The S&P 500 rose on Thursday to post a fourth consecutive record close as traders weighed more data showing inflation pressures may be easing.
The broad market index climbed 0.23% to end at 5,433.74, while the Nasdaq Composite advanced 0.34% and closed at 17,667.56. Thursday marked the fourth straight closing record for both S&P 500 and the Nasdaq. The Dow Jones Industrial Average was the underperformer: It slipped 65.11 points, or 0.17%, to end at 38,647.10.
The S&P 500 and Nasdaq hit record levels this week, boosted by fresh data showing signs of inflation pressures cooling.
May’s producer price index fell 0.2% from the prior month. Economists polled by Dow Jones expected an increase of 0.1%. That report comes a day after the Bureau of Labor Statistics posted consumer price index data for May that came in below the Street’s expectations.
Thursday’s data also follows a Federal Reserve policy decision. The Fed kept rates unchanged, but noted there has been progress made on the inflation front. That said, the central bank lowered its rate cut expectations for 2024 to one from its prior estimate of three.
“We can eliminate the possibility of an interest rate hike from here. That’s something in our framework that’s supportive for valuations across equities and credit,” said Zachary Hill, head of portfolio management at Horizon Investments. “Our baseline expectation right now is we’re going to continue to grind higher in an equity markets.”
Broadcom shares surged more than 12% after the chipmaker topped fiscal second-quarter expectations and announced a 10-for-1 stock split. On the other hand, Dave & Buster’s Entertainment shares dropped nearly 11% after the company’s first-quarter revenue missed estimates.
Generac and Paramount Global, respectively down 4.6% and 6.9%, were among the notable losers in the S&P 500. The streaming service dipped after National Amusements killed its discussions with Skydance on a proposed merger. Salesforce and Amazon, respectively down 2.9% and 1.6%, contributed to the Dow’s decline.
