- US stocks traded mixed on Thursday and ended August in the red.
- The S&P 500 closed off the month 1% lower, while the Dow and Nasdaq shed 2%.
US stocks traded mixed on Thursday, snapping a four-day winning streak and ending the month of August with a loss.
Major indexes rose in early morning trading but ended the day mostly lower, with the Dow Jones Industrial Average ending today's session slightly in the red.
Sentiment was lifted slightly this morning after the the release of the July Personal Consumption Expenditures price index. The Fed's preferred measure of inflation showed prices rose 4.2% year-over-year last month, in-line with economists' expectations, though slightly higher than the 4.1% price acceleration recorded in June.
"The PCE index has been moving in right right direction overall, but core inflation remains stickier than expected keeping the data dependent — and 'agile' — Fed more likely to raise rates again this year," LPL chief global strategist Quincy Krosby said in a statement on Thursday. "Moreover, the disinflation trend remains steady, but the Fed needs the numbers to edge lower before they can declare victory in its campaign to quell inflation."
Investors are waiting for the August jobs report to roll out Friday morning, which will help guide the Fed's next monetary policy move. Economists are expecting 170,000 new jobs added and the unemployment rate to hold steady at 3.5% this month, Refinitiv data shows.
Stocks ended August in the red, but pared the deepest losses since the middle of the month. The S&P 500 closed the month with a 1% loss. The Dow and Nasdaq Composite shed about 2% in August.
Here's where US indexes stood shortly at the 4:00 p.m. closing bell on Thursday:
- S&P 500: 4,507.53, down 0.16%
- Dow Jones Industrial Average: 34,721.91, down 0.48% (-168.33 points)
- Nasdaq Composite: 14,034.97, up 0.11%
Here's what else happened today:
- The housing market's inventory crunch deepened as listings fell for the 4th straight month in August.
- Homeowners are sitting on around $28.7 trillion in equity.
- The new bull market for tech stocks is here, thanks to a "1995-like AI Revolution," Wedbush said.
- The 10-year Treasury bond is a "screaming buy," as the Fed has regained its credibility on fighting inflation.
- Foreign investors are dumping Chinese stocks at record pace amid fear of more economic turmoil in the nation.
- Taylor Swift's Eras Tour concert film helped drive AMC stock higher.
- There are five looming risks to Apple stock ahead of its iPhone 15 release, Goldman Sachs warned.
- Dollar General stock fell as much as 17% after the budget retailer slashed its outlook for the rest of 2023.
In commodities, bonds, and crypto:
- Oil prices rose. West Texas Intermediate crude oil was up 2.24% to $83.46 a barrel. Brent, the international benchmark, slipped 1.7% to $86.69 a barrel.
- Gold edged lower 0.3% to $1,967.40 per ounce.
- The yield on the 10-year Treasury bond fell three basis points to 4.081%.
- Bitcoin slipped 3.7% to $26,252.