S&P 500 is little changed as traders await key inflation data: Live updates

The S&P 500 traded near the flatline Thursday as Wall Street looked ahead to fresh inflation data for clues as to when the Federal Reserve will begin to lower interest rates.

The broad market index was up less than 0.1%. The Nasdaq Composite added 0.3%, while the Dow Jones Industrial Average gained 112 points, or 0.3%.

Semiconductor stocks were in the red, raising questions on whether the artificial intelligence trade can continue to sustain markets in the back half of this year. Micron shares slipped more than 6% after the chipmaker issued fourth-quarter revenue guidance that was in line with estimates. Semiconductor giant and market bellwether Nvidia also sagged, dipping 1.6%.

Those moves come as traders look to the release of May’s core personal consumption expenditures price index, which is the Fed’s preferred measure of inflation. Economists polled by Dow Jones expect core PCE rose 0.1% month over month and 2.6% from the year-earlier period.

Traders hope the report will show easing pricing pressures that could cement the likelihood the Fed will lower interest rates later this year.

“Should the PCE disappoint, stagflation headlines will hit the tape, but if estimates hold or surprise with cooler data, it should help the market ease into July,” said Quincy Krosby, chief global strategist for LPL Financial.

“An overbought market and relatively expensive market based on just a handful of mega names may need to recalibrate and allow other sectors to co-exist with them or even begin to lead the market,” said Krosby. “Such adjustments can trigger pockets of volatility coupled with attractive pockets of opportunity.”

Several stocks slid after reporting quarterly earnings. Levi Strauss dropped more than 16% after the jeans maker’s latest quarterly revenue disappointed investors. Walgreens Boots Alliance plunged 25% after cutting its full-year outlook and issuing lower-than-expected earnings in the previous quarter.