SPX: S&P 500 Posts Third Straight Loss on Continued Jitters. Inflation Data Up Next.

Some AI plays were once again major decliners but all three big equity averages slipped under the flatline Thursday. PCE data is next.

🚩 Stocks Retreat Third Day

• The S&P 500 index (SPX) shuffled lower Thursday as traders and investors took risk off the table for the third straight day. The broad-based index declined 0.5% for the cash session.
• Wall Street wasn’t inspired to bet on risk assets at all. The Dow Jones Industrial Average DJI declined 0.5% and the tech-dense Nasdaq Composite IXIC slumped half a percent.
• With these extended losses factored in, money spinners are looking to what’s next – inflation data, or PCE, which is the Federal Reserve’s closely watched price growth metric.

📢 Economic Parlance

• The PCE number for August is expected to show prices grew 2.9% from last year, unchanged from the pace in July. The monthly clip is expected to indicate a slight improvement with a 0.2% increase from 0.3% in the month prior.
• Why would these figures matter? The Fed already cut interest rates, giving markets what they wanted and then some. Jay Powell said officials are eyeballing two more trims to borrowing costs by the end of the year.
• If the numbers show a faster-than-expected clip, policymakers might push back on rate cut projections and decide to keep it tighter, not looser. Either case, expect volatility and some trading opportunities across forex, crypto, and stocks when the data drops today.

👀 Quick Pulse Check

• What else should you know early Friday? The final estimate of second-quarter GDP expansion topped consensus calls with 3.8% growth from 3.3% prior. Weekly jobless claims surprised with 218,000 filings for unemployment from 232,000 the week before.
• Oracle ORCL, a huge player in the AI space, tumbled 5.5% as investors pared back their bullish bets after the tech veteran’s stratospheric rise earlier in the month.
• Intel INTC pumped 8.8% after Bloomberg reported it has approached Apple AAPL for a possible investment.
• Amazon AMZN slumped almost 1% after news broke out it has agreed to pay the Federal Trade Commission a $2.5 billion fee for tricking people into signing up for Prime.
• Bitcoin prices BTCUSD dipped under $110,000 this morning, continuing a steady decline from its record high. Ether ETHUSD was also deep in the red paint, trading under $4,000 a piece.