Stocks had a mixed performance on Wednesday as investors closely examined a key inflation report and the Federal Reserve's latest interest rate projections. The Dow experienced a slight decline of 35 points, or 0.1%, while the S&P 500 saw a gain of 0.9% and the Nasdaq Composite surged by 1.5%, achieving record-high closes for the third consecutive day.
Investor sentiment was buoyed by the May Consumer Price Index report, which revealed that inflation moderated at a slower rate than anticipated last month. Consumer prices increased by 3.3% compared to the previous year, a deceleration from April's 3.4% growth, as reported by the Bureau of Labor Statistics. On a monthly basis, prices remained unchanged, a slowdown from the 0.3% uptick seen in April.
The Federal Reserve, as widely expected, opted to maintain interest rates at their current levels but adjusted its outlook for rate cuts in 2024. The Fed now anticipates a single rate cut in 2024, a departure from its previous projection of three cuts. Fed Chair Jerome Powell emphasized during the post-meeting press conference that any rate adjustments will be contingent on further data indicating a moderation in inflation.
As the trading day concluded, stock levels may experience slight fluctuations as market participants digest the implications of the inflation report and the Fed's updated rate projections.
