US Stocks Dip Ahead Of Key Inflation Report

(MENAFN- The Peninsula) AFP

New York: Wall Street stocks slipped Wednesday ahead of inflation data expected to influence the Federal Reserve's upcoming policy decisions.

The personal consumption expenditures (PCE) price index for January, which will be released Thursday, comes on the heels of other pricing data that has topped expectations, dimming investor expectations for imminent Fed interest rate cuts.

"We've seen a very strong rally, obviously, and we're seeing a pause today," said Angelo Kourkafas of Edward Jones, who cited the PCE report as a source of caution.

The Dow Jones Industrial Average slipped 0.1 percent to 38,949.02.

The broad-based S&P 500 dropped 0.2 percent to 5,069.76, while the tech-rich Nasdaq Composite Index declined 0.6 percent to 15,947.74.

Data released Wednesday showed gross domestic product growth in the United States was revised to an annual rate of 3.2 percent in the final three months of 2023, from an initial estimate of 3.3 percent released last month.

The shift reflected a downward revision to private inventory investment offset by higher consumer spending.

Among individual companies, Beyond Meat soared more than 30 percent after announcing cost cuts and changes to its product offerings to improve financial performance.

Briefing welcomed the shift, but warned that "it may be coming too late" following the arrival of other competitors.

Dow member UnitedHealth Group fell nearly three percent following a Wall Street Journal report of a US antitrust investigation into the health giant, an insurer that has other holdings in the vast US health industry.


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