FX.co ★ U.S. Stocks Continue To Experience Choppy Trading

**Market Update: Mixed Performance Amid Economic Data Release**

Stocks exhibited little clear direction during Thursday's afternoon trading session, continuing a trend of choppy performance from earlier in the day. The major indices oscillated around the unchanged line.

As of now, the key indices show slight variations: the Dow is down 112.30 points, or 0.3%, at 38,599.91; the S&P 500 is up 3.44 points, or 0.1%, at 5,424.47; and the Nasdaq is up 30.17 points, or 0.2%, at 17,638.61.

Despite the release of optimistic U.S. economic data, Wall Street remains indecisive. This data might inspire hope that Federal Reserve officials are being conservative with their single rate cut forecast for the year. However, after yesterday's market surge, traders appear cautious about driving stock prices higher.

The latest economic reports include a moderately surprising decline in producer prices for May, contrasting with April's increase. According to the Labor Department, the Producer Price Index (PPI) for final demand dipped by 0.2% in May, following a 0.5% rise in April. Economists had anticipated a modest 0.1% increase.

Additionally, the annual rate of producer price growth decelerated to 2.2% in May from a revised 2.3% in April, a departure from the expected acceleration to 2.5%.

Compounding the day's economic surprises, initial U.S. unemployment claims unexpectedly rose in the week ending June 8th. First-time jobless claims increased by 13,000 to 242,000, compared to the previous week's stable level of 229,000. Projections had suggested a decline to 225,000. This increase marks the highest level of jobless claims since August 12, 2023, when they reached 248,000.

Bill Adams, Chief Economist for Comerica Bank, commented, "The latest data in hand nudge the door a little wider open for the Fed to begin making an interest rate cut later this year. Comerica forecasts for the Fed to make its first cut of this cycle in September, followed by a second cut in December."

**Sector Performance**

Oil service stocks declined significantly despite a modest rise in crude oil prices, with the Philadelphia Oil Service Index falling by 2.2%. Gold stocks also displayed substantial weakness, indicated by a 2.2% drop in the NYSE Arca Gold Bugs Index, following a sharp pullback in precious metal prices after Wednesday's surge.

Additional sectors experiencing notable weakness include airline, brokerage, and steel stocks. Conversely, computer hardware and semiconductor stocks have shown strong gains.

**Global Markets**

In overseas markets, the Asia-Pacific region presented a mixed picture. Japan's Nikkei 225 Index decreased by 0.4%, and China's Shanghai Composite Index fell by 0.3%. In contrast, Hong Kong's Hang Seng Index and South Korea's Kospi both rose by 1.0%.

European markets also saw a downturn, with the U.K.'s FTSE 100 Index down by 0.6%, and Germany's DAX Index and France's CAC 40 Index each declining by 2.0%.

**Bond Market**

Treasuries extended their strong upward movement from the previous two sessions. Consequently, the yield on the benchmark ten-year note— which inversely correlates with its price—dropped by 4.7 basis points to 4.248%.

*End of Report*