The U.S. economy received some mixed news from fresh data released Thursday, including slight changes in inflation rates, jobless claims and gross domestic product (GDP).
First-quarter GDP, already posting a disappointing 1.6% last month, saw a revised drop to 1.3%. The GDP price index held steady at 3.1%, and GDP sales slipped to 1.7%.
Jobless claims rose from 216,000 to 219,000, and continuing jobless claims climbed from 178,000 to 179,000. The loosening of a historically tight labor market is another factor the Federal Reserve is watching closely to decide its next move on interest rate cuts.
Core PCE prices came in 3.6% ahead of an expected 3.7% in April, raising hopes that the Fed will be able to reduce interest rates in the near future. The PCE price index, which include food and energy costs, also beat projections with a 3.3% topping the 3.4% prediction.
However, pre-market trading reflected pessimism that the drop was significant enough to move the Fed from its hardline approach to bringing down inflation. Treasury yields and pre-market trading declined and the dollar dropped after posting its best day in a month on Wednesday.
