New York, NY – US stocks experienced a boost on Friday as the latest data showed a decrease in inflation, which was eagerly observed by investors amidst the aftermath of the recent Biden-Trump debate. The S&P 500 index made modest gains, inching closer to its record high, while the Nasdaq Composite and Dow Jones Industrial Average also saw positive movements.
The stock market seemed poised for a positive conclusion to a turbulent week, marked by rebounds from a three-day losing streak. Although the first half of the year has been strong for stocks, concerns of a potential pullback for the remainder of the year have been circulating.
The Federal Reserve’s preferred inflation gauge revealed that inflation eased in May, with prices rising at the slowest pace since March 2021. This data point, a significant one for the first six months of the year, showed that the core Personal Consumption Expenditures (PCE) index rose 0.1% in May, aligning with market expectations.
With the upcoming US election adding to investor apprehensions, attention was drawn to President Joe Biden’s lackluster performance in the recent debate against Donald Trump. Trump’s proposed policies, including tax cuts and trade restrictions, are seen as potentially beneficial for the stock market, reflected in the surge of shares in Trump Media & Technology Group.
Furthermore, concerns about consumer spending have been raised as key companies like Nike and Walgreens projected downbeat sales prospects. Nike’s stock plummeted more than 15% in early trading after the company forecasted a larger-than-expected sales decline in 2025.
As the market remains vigilant for any signs of weakening consumer resilience, the fluctuations in stock prices and the overall economic outlook in the latter half of the year continue to be closely monitored. The interplay of economic factors, political events, and corporate performance will likely shape the trajectory of the market in the coming months.