US Equity Indices Drop After Consumption Expenditure Grows Slower Than Forecast; Treasury Yields Drop Below 3%; Oil Sinks

Last Updated: Thursday, June 30, 2022 12:32 PM | MT Newswires

US equity benchmarks fell after midday on Thursday as a gauge of personal consumption expenditure rose at half the pace expected in May while the core inflation print climbed less than forecast.

The Dow Jones Industrial Average slid 0.7% to 30,809.6, with the S&P 500 down 0.6% to 3,795.2, and the Nasdaq Composite 0.9% lower at 11,078.5.

Energy, materials, and technology were among the steepest decliners, with all sectors barring two, real estate and utilities, in the red.

The US 10-year yield sank by 11.3 basis points to 2.99% intraday, dipping below the psychology-important 3% mark.

The West Texas Intermediate futures dived 2.6% to $106.98.

Personal consumption expenditures were up 0.2%, missing expectations for an increase of 0.4% and below the 0.6% gain in April. After adjustment for inflation, real PCE fell by 0.4% after a 0.3% increase in April, compared with expectations for a 0.3% decline.

The core PCE price index, which excludes the more volatile food and energy prices, increased by 0.3%, below the 0.4% gain expected. On a year-over-year basis, the rate slowed to 4.7% from 4.9% in the previous month, data from the Bureau of Economic Analysis showed.

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