As investors anticipated the most recent information on personal consumption expenditures, the Federal Reserve’s preferred inflation barometer, U.S. equity futures were barely moved on Thursday evening.
The Dow Jones Industrial Average futures moved down by 26 points, or 0.08%. NASDAQ 500 futures
Nasdaq 100 futures were barely above the flat line as the index declined by 0.03%.
Major bank names helped the Dow rise roughly 270 points, or 0.8%, during normal trading on Thursday. The Nasdaq Composite closed the day flat while the S&P 500 gained over 0.5%.
For investors, Friday is a crucial day since it signals the end of June, the second quarter, and the first half of the year. Here are the indices’ closing positions as of Thursday.
• The S&P 500 is on track to have its best monthly performance since January for the month of June with a gain of 5.18%. The Nasdaq has increased by 5.07%, and together with the broad market index, they are both expected to post gains for a fourth consecutive month. With a gain of 3.69%, the Dow is on pace to have its best month since November.
• The S&P 500 has increased 6.99% for the second quarter and is on pace to post gains for a third consecutive quarter. The Nasdaq boasts consecutively positive quarters with a gain of 11.2%. The Dow has increased by 2.55%, but it is also on track for a third quarter of gains.
• The S&P 500 has increased 14.51% so far this year and is on track to have its best first half since 2018. With a gain of about 30%, the Nasdaq is on pace for its biggest first half since 1983. The 30-stock Dow has risen by a more modest 2.94%.
The S&P 500, Dow, and Nasdaq are all on track to post gains this week, and all three major averages are up over 1% so far this year.
Important economic informationAccording to Stephanie Lang, chief investment officer at Homrich Berg, there is tension between a soft landing scenario supported by positive economic statistics and the Fed’s current plans for a harder stance.
The preferred inflation gauge of the Fed is made public on Friday.
The personal consumption expenditures price index, the preferred inflation indicator of the Federal Reserve, will be released on Friday morning.
According to economists surveyed by Dow Jones, core PCE, which excludes volatile energy and food costs, increased 0.3% on a monthly basis in May and 4.7% on an annual basis. The indicator increased 0.4% from the previous month in April and increased 4.7% annually.Jim Bullard, president of the St. Louis Federal Reserve, outlined three reasons why the Federal Open Market Committee prefers PCE over the consumer price index. First, PCE takes into consideration the trade-offs that individuals make when they exchange certain products and services for others.
Second, the PCE covers a wider range of products and services. Finally, it is possible to update past PCE data.