The S&P 500 was little changed, with Nvidia Corp. falling on an uninspiring forecast. Short-dated Treasuries underperformed. The 10-year yield was little changed.
“The economy appears to be on all cylinders, and it should be a boost of confidence to markets that most of the tariff-angst was misplaced earlier this year,” said Chris Zaccarelli at Northlight Asset Management. “However, markets have already priced in a September rate cut and it is important that the inflation data remains restrained between now and then.”
A key US inflation gauge probably ticked higher, with a report Friday forecast to show the personal consumption expenditures price index excluding food and energy rose 2.9% in July from a year ago. That would be fastest annual pace in five months.
Investors continue to monitor comments from Fed officials to gauge their appetite for a September rate cut, with Governor Christopher Waller due to speak later Thursday.
Meantime, Fed Governor Lisa Cook filed a lawsuit challenging President Donald Trump’s attempt to fire her over claims she lied on mortgage applications, kicking off a historic fight over independence of the US central bank.
