US Stocks Drift as 3.7% Inflation Tops Forecasts, Lifting 10-Year Yield to 4.66%
Updated
Updated · The Associated Press · Aug 26
US Stocks Drift as 3.7% Inflation Tops Forecasts, Lifting 10-Year Yield to 4.66%
3 articles · Updated · The Associated Press · Aug 26
Summary
U.S. stocks were little changed by midday, with the S&P 500 down 0.1%, the Dow off 100 points and the Nasdaq lower 0.3% after inflation came in slightly hotter than expected.
Inflation held at 3.7% in July versus a 3.6% forecast, while consumer spending slowed and second-quarter GDP was revised to an unchanged 1.5% annual pace.
Treasury yields ticked higher after the data, with the 10-year yield rising to 4.66% from 4.64%, while traders still saw nearly a three-in-four chance of at least one Fed rate hike this year.
Nvidia's earnings due after the bell kept broader moves muted, even as Abercrombie & Fitch jumped 40.4%, J.M. Smucker gained 4.2% and Intuit fell 5% on its outlook.
Oil offered some relief after Brent slipped to about $87 from $94 late last week, though Persian Gulf shipping uncertainty tied to the Iran war kept energy markets volatile.