### Stock Market Recap: Wall Street Takes a Breather Amidst New Highs
On Thursday, stocks showcased a relatively subdued performance as traders took a pause following the rally in the previous session. Despite the lackluster trading, both the Nasdaq and the S&P 500 secured new record closing highs.
The Nasdaq rose by 59.12 points, or 0.3%, to end the day at 17,667.56, while the S&P 500 climbed 12.71 points, or 0.2%, to close at 5,433.74. In contrast, the Dow Jones Industrial Average bucked the trend, slipping 65.11 points, or 0.2%, to 38,647.10.
### Economic Data Impact
The choppy trading came despite positive U.S. economic data that could potentially bolster optimism about future interest rate changes. While some hoped that the Federal Reserve might adopt a more conservative stance by forecasting just one rate cut this year, traders appeared hesitant to continue buying following Wednesday's surge.
### Producer Price Index and Jobless Claims
According to the Labor Department, the producer price index for final demand dipped by 0.2% in May, following a 0.5% rise in April. This was contrary to economists' expectations of a 0.1% increase. Additionally, the annual growth rate of producer prices slowed to 2.2% in May, down from an upwardly revised 2.3% in April.
In another unexpected turn, initial jobless claims rose to 242,000 for the week ending June 8th, up 13,000 from the previous week's 229,000. Economists had anticipated a decline to 225,000. This increase brought jobless claims to their highest level since mid-August 2023.
Bill Adams, Chief Economist for Comerica Bank, noted that the latest data "nudge the door a little wider open for the Fed to consider an interest rate cut later this year." Adams predicted the first cut would occur in September, followed by another in December.
### Sector Performance
Semiconductor and computer hardware stocks showed notable gains, contributing to the tech-heavy Nasdaq's rise. The Philadelphia Semiconductor Index and the NYSE Arca Computer Hardware Index climbed by 1.5% and 1.4%, respectively. Broadcom (AVGO) shares surged by 12.3% after the company reported better-than-expected fiscal second-quarter results and announced a 10-for-1 stock split.
Conversely, gold stocks saw a significant drop, with the NYSE Arca Gold Bugs Index declining by 2.4%, in tandem with falling gold prices. The Philadelphia Oil Service Index also fell by 2.1%, despite a modest rise in crude oil prices.
### International Markets
In the Asia-Pacific region, stock markets delivered mixed results. Japan's Nikkei 225 Index fell by 0.4% and China's Shanghai Composite Index dipped by 0.3%, while Hong Kong's Hang Seng Index and South Korea's Kospi both gained 1.0%.
European markets trended downward, with the U.K.'s FTSE 100 Index sliding by 0.6%, and both Germany's DAX Index and France's CAC 40 Index plunging by 2.0%.
### Bond Market Movements
Treasuries continued their strong upward movement for the third consecutive session. Consequently, the yield on the benchmark ten-year note fell by 5.7 basis points to a two-month low of 4.238%.
### Looking Ahead
Friday's trading may be influenced by the release of the University of Michigan's preliminary report on consumer sentiment for June, which includes insights on inflation expectations.
