Stock Market Today: S&P 500 slips as tech struggles ahead of key inflation data
Investing.com-- The S&P 500 slipped Wednesday, but the broadening out of the rally beyond tech kept losses in check ahead of key inflation data that will likely influence the Federal Reserve interest rate outlook.
By 16:00 ET (21:00 GMT), the Dow Jones Industrial Average fell 23 points, or 0.1%, S&P 500 fell 0.2%, lower and NASDAQ Composite dropped 0.6%.
The U.S. economy expanded at a 3.2% annualized rate in the fourth quarter, revised slightly down from the previously reported 3.3% pace, and a drop from 4.9% growth the prior quarter.
«While the minimal revision to fourth-quarter GDP underscores the ongoing storyline of a strong economy and resilient consumer [...] momentum clearly slowed from an outsized rise of near 5% in the third quarter into year-end,» Stifel said in a note.
The weaker growth data come just a day ahead of the PCE price index, the Fed’s preferred inflation gauge, that is likely to factor into the central bank’s outlook on interest rates.
«The positive economic outlook bodes well for corporate earnings,» said Salvatore Ruscitti, U.S. equities strategist with MRB Partners. «Earnings growth should be less narrow this year, thereby supporting a broadening of equity market leadership.»
Beyond Meat Inc (NASDAQ:BYND) surged over 30% after reporting better-than-expected quarterly revenue, and also forecasting a improved margins in the second-half of the year amid a turnaround plan.
“Our 2024 plan includes taking steps to steeply reduce operating expense and cash use,” Beyond Meat CEO Ethan Brown said in a statement.
TJX Companies (NYSE:TJX) rose 0.6% after the retailer reported higher-than-anticipated sales growth in the fourth quarter, but offered up soft future guidance, which some on Wall Street
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