Stocks started Friday within a hair’s breadth of their record closing highs, with investors optimistic despite a hotter-than-expected inflation read.
The S&P 500 gained 0.2%. The Nasdaq Composite rose 0.3%. The Dow Jones Industrial Average rose 172 points, or 0.4%. The S&P and Nasdaq are at new intraday highs and if they keep pace they’ll hit a new closing high, surpassing prior record closes of 6,144.15 and 20,173.89, respectively.
The gains come despite data showing a more muddled picture of the economy this morning. Fed’s preferred measure of inflation rose in May while consumer spending declined. There was weakness in personal income, which dropped instead of rising as forecast.
The Fed remains in a wait and see mode, and has decided to stay put on rate cuts. In that regard, investors will be watching the June and July inflation data that comes in before the Fed’s September meeting–most traders bet that’s when a rate cut is most likely.
A final read on consumer sentiment in June from the University of Michigan lands at 10 am ET. The preliminary read showed sentiment improving for the first time in six months. A better read could translate to more stock gains.