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 by retailers and communications services companies helped offset losses by consumer goods makers, financial stocks and elsewhere in the market. Amazon.com grew 2.2% and Meta platforms added 1.3%.
Walgreens strengthens its alliance plunged 22.2%, the biggest drop in the S&P 500. It 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 biggest gains in the market 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 the 10-year Treasury note, 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 said the american economy has grown at an annual rate of 1.4% from January to March. This figure is a slight revision from a previous estimate of 1.3%. It is the slowest quarterly growth since spring 2022.
The report also confirms data from previous economic reports that show consumers are squeezed by persistent inflation and high interest rates. Consumer spending, which fuels economic growth, grew at a rate of just 1.5%, down from an initial estimate of 2%, according to the report.
The main finding of the report is that “the economy remained resilient in the first quarter, but growth in private sector demand slowed, driven by greater consumer caution,” said Gregory Daco, an economist in head of EY, in a note.
Slowing consumer spending could help further dampen inflation, but slowing too much could have 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 much that it slides into a recession.
The stock market has been sluggish this week ahead of the government's next influential inflation report on Friday. The personal consumption expenditures (PCE) index is the Fed's preferred measure of inflation.
Economists expect the report to show inflation easing 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.
The latest inflation updates could influence decision of central banks on when to start cutting interest rates, which remain at their highest level in more than 20 years and are having an impact around the world. Wall Street is betting the central bank will start cutting interest rates at its September meeting.
The S&P 500 index is on track to record its fourth consecutive week of gains. With one more trading day this month, the index is up just under 4% for the month of June and about 15% year to date.
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.
