Wall Street ends lower as investors digest inflation data, presidential debate
investors digested in-line inflation data and weighed political uncertainty after the U.S. presidential debate.
Nike had its steepest one-day fall in over two decades after a gloomy forecast.
«I don't think the inflation number changes much because the Federal Reserve has been pretty serious about their 2% target and remains disciplined,» said Ann Miletti, Allspring's head of active equity.
Data showed U.S. monthly inflation was unchanged in May, an encouraging development after strong price increases earlier this year raised doubts over the effectiveness of the Fed's monetary policy.
The Commerce Department report also showed consumer spending rose marginally last month, fueling optimism that the U.S. central bank could engineer a much-desired «soft landing» for the economy.
Bets on a rate cut in September rose to 66% after the personal consumption expenditures price index release, LSEG FedWatch data showed.
Traders have maintained bets on two cuts despite Fed projections of just one this year, as they hope inflation will keep cooling.
The first debate on Thursday between U.S. President Joe Biden and Republican rival Donald Trump also weighed on stocks, said Thomas Martin, senior portfolio manager at Globalt Investments, citing the incumbent's shaky performance.
«People are trying to think about what's going to happen with the presidential election. So instead of uncertainty decreasing after the debate, it's increased,» he said.
Treasury yields reversed early losses to end higher, adding pressure on some
