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Stock Market Today: Stocks Rise After a Bumpy Week

Stock Market Today: Stocks Rise After a Bumpy Week cover

The stock market is closing out a bumpy week with a mixed performance, with the S&P 500 and Nasdaq edging slightly higher while the Dow Jones finished flat. This comes despite some positive economic data and the ongoing impact of the first Biden-Trump debate.

Cooling Inflation Offers Hope

Investors were encouraged by the latest reading on the Fed's preferred inflation gauge, the Personal Consumption Expenditures (PCE) index. The May report showed a slowdown in price increases, offering hope for potential interest rate cuts later in the year. However, experts anticipate the Fed will wait for further confirmation of this trend before taking action.

Housing Market "Stuck in the Mud"

While inflation news was positive, concerns linger about the housing market. Bank of America predicts the market will remain sluggish for years due to a phenomenon called the "lock-in effect." Ultra-low mortgage rates secured during the pandemic have discouraged homeowners from selling, keeping supply low and prices high. This could dampen economic growth in the long run.

Market Movers:

Looking Ahead

As July approaches, investors will be keeping a close eye on the Fed's next policy meeting. Additional economic data releases and the upcoming election season will also influence market sentiment.

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