Week InReview: May 31, 2024

Stocks fall as traders await PCE.

Awaiting PCE | Wall Street traders sent stocks down and bonds up after the latest round of economic data signaled a slowdown in momentum. Data showed the US grew at a softer pace than previously estimated — as both spending and inflation were marked down. Economic cooling means officials could have room to cut interest rates this year, but that might also be a concern for consumption and corporate profits. The S&P 500 dropped to 5,235, led by tech losses, while the Nasdaq 100 fell 1%. Federal Reserve Bank of New York President John Williams said he expects inflation to continue falling. Treasury two-year yields dropped five basis points to 4.92%. The dollar retreated. Ahead, traders are focused on the Fed's preferred price gauge. Economists expect the personal consumption expenditure price index minus food and energy to have risen 0.2% in April, the smallest advance so far this year. Separately, Trump Media & Technology Group shares dropped as much as 15% after a jury found Donald Trump guilty of multiple felonies at his hush-money trial, making him the first former US president to be convicted of crimes.

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