The S&P 500 Index ($SPX) (SPY) on Wednesday closed down -0.17%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.061%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.54%.
Stock indexes on Wednesday posted moderate losses. Long liquidation pressure from recent record highs weighed on the stock market ahead of Thursday’s PCE deflator report, the Fed’s preferred inflation gauge. The consensus is that the Jan core PCE deflator will ease to 2.8% y/y from 2.9% y/y in December. Wednesday’s U.S. Q4 U.S GDP was mixed for stocks as Q4 GDP was revised lower, but Q4 personal consumption was revised higher. Lower bond yields on Wednesday were supportive of stocks.
