Stock Market Reading Flat ahead of Inflation Indicator

The US stock market indices changed very little on Thursday compared to the previous day, closing with a 0.30% change for the Nasdaq Composite.

The S&P 500 closed with a 0.09% increase, and the Dow Jones lost only 0.27%. The market seems to be holding out for inflation news from one key indicator- the personal consumption expenditure report. The Federal Reserve will be watching that indicator as well, adjusting its inflation rating based partly on what that report shows.

 

Nvidia (NVDA) fell just 1.9%, holding steady after a recent dip in price corrected for its sky-high gains. That stock climbed so high in recent weeks that it helped the company beat out Microsoft’s market cap and put Nvidia into the top spot for overall global market cap.

Investors should look at home prices, which seem to be decreasing. A few reports are showing that home prices are dropping by about 0.3%, which would be the first time this has happened in the post-Covid era. There are more homes available to buy as well, with real estate firms reporting an increase of 35% in active listings.

The personal consumption expenditures should show very little monthly increase, according to predictions. The expectation is that the price index will increase by 0.1% for the month and about 2.6% for the period from this time last year to present day.

What to Expect

If these economic indicators pan out the way they are expected to, they will show, if nothing else, that inflation may be cooling slightly. The stock market may react as soon as later today or early on Monday next week.

Any kind of indication that inflation is not as high as it has been will be welcomed with open arms by the market, and we would see a ripple effect across multiple markets, into cryptocurrency and the commodities market.

However, even if these predictions do come true for these inflation indicators, they are not major changes. We should not expect to see major shifts in the market but instead a smaller pattern of improved trading over a short period of time.  

 

 

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ABOUT THE AUTHOR See More
Timothy St. John
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
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