US benchmark equity indexes are currently experiencing a struggle for direction ahead of Friday's market close as participants evaluate the latest economic data, which includes the Federal Reserve's preferred inflation measure. The Nasdaq Composite is down 0.4% at 18,118.7, showing volatility in tech stocks, while the S&P 500 has dipped 0.1% to 5,740.7.
Conversely, the Dow Jones Industrial Average has risen by 0.4% to 42,342.2, indicating some strength among large cap stocks. Among the various sectors, technology has seen the steepest decline, reflecting concerns over its recent performance, while the energy sector is leading the gainers, showcasing a potential rebound or interest from investors in energy-related assets. In terms of consumer behavior, US consumer spending has eased more than anticipated in August, raising some concerns.
However, the Fed's preferred inflation metric has risen year over year and overall met Wall Street's estimates, according to government data released. Additionally, US consumer sentiment has shown an upward trend in September, which is a positive indicator. The year-ahead inflation expectations, however, have edged slightly lower, as reported in the final results from the University of Michigan's Surveys of Consumers.
This slight decrease in inflation expectations could be a signal for improving consumer confidence moving forward. On the bond market front, the US two-year yield has fallen by 5.8 basis points to 3.57%, while the 10-year rate has seen a slight loss of 3.7 basis points to settle at 3.75%. This movement in yields reflects ongoing adjustments by investors in response to the evolving economic landscape. In the commodities arena, West Texas Intermediate crude oil prices have increased by 1%, currently priced at $68.36 a barrel, highlighting strong demand or possible supply concerns in the energy market. As we approach the end of the trading week, market participants will be keenly observing economic developments and adjustments in inflation metrics and consumer sentiment, which could significantly influence trading decisions and strategies in the coming days..