Stock Market Today: Wall Street Up Ahead of Inflation Report | World War I

Wall Street's major stock indexes closed little changed Thursday as traders eagerly awaited a key inflation report that could influence the Federal Reserve's next interest rate decision.

The S&P 500 gained 0.1%. The benchmark index is near the all-time high it hit last week.

The Nasdaq Composite Index rose 0.3%, remaining just below its all-time high. The Dow Jones Industrial Average closed up 0.1%.

Gains at retailers and communications services companies helped offset losses at consumer goods makers, financial stocks and other market participants. Amazon.com rose 2.2% and Meta Platforms added 1.3%.

Walgreens Boosts Alliance fell 22.2%, the biggest decline in the S&P 500. The company reported lower-than-expected results and lowered its outlook. The company said it could close hundreds more stores over the next three years.

Jeans maker Levi Strauss fell 15.4% after its latest quarterly revenue results fell short of analysts' expectations, as did its current profit forecast for the year.

Spice maker McCormick rose 4.3%, one of the market's biggest gains after beating analysts' profit forecasts.

Chipmaker Micron Technology fell 7.1% after its latest forecast disappointed investors.

Treasury yields fell in the bond market. The yield on 10-year Treasury bonds, which influences interest rates on mortgages and other consumer loans, fell to 4.28% from 4.33% late Wednesday. The two-year Treasury yield fell to 4.71% from 4.75%.

A government update says the U.S. economy grew at an annual rate of 1.4% from January to March. This figure is a slight revision from a previous estimate of 1.3%. This is the slowest quarterly growth since spring 2022.

The report also confirms data from previous economic reports that show consumers are under pressure from persistent inflation and high interest rates. Consumer spending, which has fueled economic growth, rose just 1.5%, compared with an initial estimate of 2%, the report said.

The main finding of the report is that “the economy remained resilient in the first quarter but private sector demand growth slowed, driven by greater consumer caution,” Gregory Daco, EY chief economist, said in a note.

Slowing consumer spending could help further dampen inflation, but slowing too much could have even more painful consequences for the economy. The Federal Reserve is trying to time its efforts to bring inflation back to its 2% target without slowing the economy so far that it slides into a recession.

The stock market has been listless this week ahead of Friday's release of the government's next influential inflation report. The Personal Consumption Expenditures Index, or PCE, is the Fed's preferred measure of inflation.

Economists expect the report to show inflation falling slightly to 2.6% in May, from 2.7% in April. That’s down from the PCE’s peak of 7.1% in mid-2022. Other measures of inflation, including the consumer price index, have also declined significantly over the past two years.

Latest inflation updates could influence central banks' decision on when to start cutting interest rates, which remain at their highest level in more than 20 years and are having ripple effects around the world entire. Wall Street is betting that the central bank will start cutting interest rates at its September meeting.

The S&P 500 is on track for its fourth straight week of gains. With an extra trading day this month, the index is up just under 4% for June and about 15% so far this year.

Overall, the S&P 500 rose 4.97 points to 5,482.87. The Dow added 36.26 points to 39,164.06. The Nasdaq gained 53.53 points to close at 17,858.68.