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US Inflation Eases, Growth Slows Sharply
31 Jul
Summary
- Core PCE inflation rose 0.1% in June, below expectations.
- Second-quarter GDP expanded at a 1.5% annualized pace.
- Treasury yields declined following the release of economic data.
Wall Street stocks experienced an upward trend on Thursday, buoyed by new U.S. economic indicators. Data released showed a moderation in inflation while second-quarter economic growth fell short of projections. The Dow Jones Industrial Average saw a gain of approximately 0.5%, the S&P 500 increased by nearly 0.9%, and the Nasdaq Composite recorded a rise of about 1.7%. Technology stocks were the primary drivers of gains within the S&P 500 sectors.
Further details from the Bureau of Economic Analysis indicated that core personal consumption expenditures, the Federal Reserve's key inflation metric, rose by 0.1% in June compared to the prior month. This figure was below the anticipated 0.2% increase. Concurrently, the agency reported that U.S. gross domestic product expanded at a 1.5% annualized rate in the second quarter. This pace of growth was lower than the consensus estimate of 2.3% and represented a decrease from the 2.1% growth recorded in the first quarter. Treasury yields subsequently fell in response to this economic data.
