Stock market today: Indices fall ahead of new economic data

• The U.S. stock market fell from a record high as investors awaited new economic data.
• Markets are bracing for the latest GDP revisions, jobless claims and PCE inflation data due in the coming days.
• Investors are still pricing in significant interest rate cuts for next year, according to the CME FedWatch tool.

U.S. stock markets were mostly lower on Wednesday, ending a record streak of gains, as investors eagerly awaited upcoming economic data.

The Dow Jones Industrial Average fell nearly 300 points, and the S&P 500 fell from record highs to end the day about 0.2% lower. The Nasdaq Composite posted a small gain.

Bond yields rose, with the yield on the 10-year Treasury note rising five basis points to 3.789%.

Traders are expecting a series of economic releases later this week, with the latest second-quarter GDP revision and weekly jobless claims due Thursday morning. Personal consumption expenditures, the Fed’s preferred measure of inflation, is due Friday.

The data should give markets more insight into the underlying strength of the U.S. economy, which could impact the path of interest rate cuts later this year and into 2025.

“While we expect the economy to slow to a more moderate pace toward the end of the year, our base case does not include a recession,” Scott Wren, senior global strategist at Wells Fargo, said in a note Wednesday.

“Even with this mindset, we are mindful of potential risks in the coming months as the economy continues to slow (interest rate cuts will not immediately reverse the slowdown), the U.S. elects a new president, and tensions in the Middle East and Ukraine appear to be rising.”

Traders continue to expect sharp rate cuts over the next year. Markets have priced in a 59% chance the Fed will deliver another massive 50-basis-point cut in November, according to the CME FedWatch tool, signaling a rapid pace of easing.

On the earnings front, investors will get an update on the strength of U.S. chipmakers when Micron Technologies reports results after the close of trading. The event will be an important indicator for AI trading as investors worry about things like the payback on massive spending and continued demand for AI tools.

Micron, which has consistently beaten earnings and revenue expectations over the past year, rose more than 1% on Wednesday ahead of the results.

Here’s what the US indices looked like at the close of trading on Wednesday at 4:00 p.m.:

Here’s what else is happening today:

For commodities, bonds and cryptocurrencies:

• Oil futures fell. West Texas Intermediate crude fell 2.57% to $69.72 a barrel. Brent crude, the international benchmark, fell 2.25% to $73.48.
• Gold rose 0.3% to $2,684 an ounce.
• The yield on the 10-year Treasury note rose five basis points to 3.789%.
• Bitcoin fell 0.93% to $63,239.