Wall Street Wavers Amid Inflation Concerns and Fed Speculation

Wall Street indices ended Thursday on a mixed note as inflation concerns and potential interest rate cuts weighed on investor sentiment. The S&P 500 recorded a marginal gain, edging to a new closing high, while the Dow Jones and Nasdaq remained nearly flat. A Labor Department report on producer prices, which marked the most significant increase in three years, heightened fears of mounting inflation.

As a result of the report, traders have adjusted their expectations for Federal Reserve interest rate cuts, now factoring in a 56.7 basis-point reduction for the year, down from 63 basis points prior to the data release. The market is still anticipating a quarter-percentage-point cut in September, despite ongoing inflation challenges.

On the geopolitical front, attention is turning to President Donald Trump's forthcoming meeting with Russian President Vladimir Putin, with the Ukraine conflict as a focal point. Meanwhile, market observers are also scrutinizing upcoming economic indicators like the Expenditures Price Index as they await further clarity on inflation trends and their implications for monetary policy.

(With inputs from agencies.)