Stock market today: Wall Street poised for gains ahead of consumer spending, inflation data
JOE McDONALD and MATT OTT, Associated Press
Pedestrians pass by the Hong Kong Stock Exchange electronic screen in Hong Kong, Thursday, June 29, 2023. Asian stock markets were mixed Thursday after leaders of major central banks said they need to keep interest rates high to fight persistent inflation despite fears that might tip the global economy into recession. (AP Photo/Louise Delmotte)
Wall Street is poised to open with gains Thursday ahead of new data on jobs and U.S. economic growth with the leaders of major central banks saying this week that interest rates must remain elevated to tamp down inflation, though there have been indications that the surge in prices has abated.
Futures for the benchmark S&P 500 index and Dow Jones Industrial Average each gained about 0.3% before the opening bell.
U.S., European and Japanese central bankers meeting Wednesday in Portugal said with hiring still strong, they have yet to extinguish upward pressure on prices. “Policy hasn’t been restrictive enough for long enough,” said Federal Reserve Chair Jerome Powell.
“The end of hiking interest rates is not in sight yet,” Carl B. Weinberg of High-Frequency Economics said in a report.
Early Thursday the government will issue its third and final estimate of first-quarter U.S. gross domestic product and also the latest data on weekly jobless claims.
While the previous estimate of economic growth was a tepid 1.3%, Americans are still spending and the labor market has remained strong under the weight of a long string of Federal Reserve interest rate hikes. Though layoffs have ticked higher in recent weeks, hiring remains strong and job openings plentiful.
On Friday, the U.S. will issue a monthly consumer spending report that is closely monitored by the Fed for signs of inflation.
While some economists still expect at least a brief recession this year after the Fed and central banks in Europe and Asia raised interest rates, others think a so-called “soft-landing” — in which growth slows but households and businesses spend enough to avoid a full-blown recession — is still possible.
The Fed has said it expects to raise rates one or two more times this year, while the European Central Bank and others have sounded even more aggressive.
In Europe at midday, the CAC 40 in Paris rose 0.8%, the DAX in Frankfurt picked up 0.2% and the FTSE 100 in London lost 0.2%.
In Asia, the Shanghai Composite Index lost 0.2% to 3,182.38 while the Nikkei 225 in Tokyo gained 0.1% to 33,234.14. The Hang Seng in Hong Kong sank 1.2% to 18,934.36.
The Kospi in Seoul gave up 0.6% to 2,550.02 while Sydney’s S&P-ASX 200 ended little-changed at 7,194.90.
New Zealand and Bangkok advanced. Markets in India and Singapore were closed for holidays.
In energy markets, benchmark U.S. crude rose 31 cents to $69.87 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.86 on Wednesday to $69.56. Brent crude, the price basis for international oil trading, added 26 cents to $74.50 per barrel in London. It gained $1.77 the previous session to $74.03.
The dollar edged down to 144.22 yen from Wednesday’s 144.32 yen. The euro strengthened to $1.0936 from $1.0922.
On Wednesday, the S&P 500 edged down less than 0.1%. The Dow slipped 0.2% while the Nasdaq composite rose 0.3%.
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McDonald reported from Beijing; Ott reported from Silver Spring, Md.
