US stocks slumped from record highs as traders awaited fresh economic data. Markets are bracing for the latest GDP revision, jobless claims, and PCE inflation data in the coming days. US stocks were mostly lower on Wednesday, ending a record-setting streak of gains as traders looked ahead to coming economic data.
The Dow Jones Industrial Average fell nearly 300 points and the S&P 500 slipped from record highs, ending the day about 0.2% lower. The Nasdaq Composite eked out a small gain.
Bond yields rose, with the 10-year Treasury yield up five basis points to 3.789%. Traders are looking ahead to a slew of economic releases in the latter part of the week, with the second-quarter's latest GDP revision and weekly jobless claims scheduled for Thursday morning.
Personal Consumption Expenditures inflation, the Fed's preferred inflation measure, will be released on Friday. The data points should give markets more insight into the underlying strength of the US economy, which could impact the path of rate cuts into year-end and in 2025. "While we are looking for the economy to slow to a more moderate pace into year-end, our base case does not include a recession," Scott Wren, the senior global strategist at Wells Fargo said in a note on Wednesday.
"Even with that view, we are aware of potential risks in coming months as the economy continues to slow (interest rate cuts won't immediately reverse the slowdown), the US elects a new president, and tensions in the Middle East and Ukraine ap.
