The Nasdaq rose 0.2%, while the S&P 500 fell 0.3% and the Dow Jones Industrial Average dropped 0.9%. U.S. stocks ended modestly lower, while a flurry of economic data eased concerns about imminent rate hikes and sent tech stocks higher. The tech-heavy Nasdaq rose 63.52 points, or 0.24% to 26861.06, unwinding declines from earlier in the week. The S&P 500 fell 19.3 points, or 0.25%, to 7651.54 and the Dow dropped 443.87 points, or 0.86%, to 50906.05.
The Commerce Department boosted its reading for U.S. GDP growth in the second quarter to 2.2% from a prior estimate of 1.5%, citing stronger consumer-spending and investment levels. The personal-consumption expenditures price index, the Federal Reserve’s preferred inflation metric, rose at an annual rate of 3.4% in August, just as it did in July. The pair of reports depict an economy where growth hasn’t slowed and inflation is holding steady, easing pressure on the Fed to keep raising rates.
The probability of another hike at the next Fed meeting fell to 37% from around 68% Tuesday morning, according to CME’s Fed Watch tool. Treasury yields continued their climb, with the benchmark 10-year Treasury yield rising to 5.292%, its highest close since May 2002. Oil prices recovered, with Brent crude up 0.92% at $103.53. United Therapeutics shares climbed 13% after a patent lawsuit win, while Liquidia shares tumbled 57%. Conagra Brands shares fell 4.9% and Northrop Grumman shares slipped 4.2%.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing