Key inflation data lifts the broad market index

Note: Figures recorded at 7:40am AEDT. Updated figures and a video recording will be available at 9am AEDT.

The S&P 500 and Nasdaq Composite moved into positive territory on Thursday as a key inflation metric met economist expectations along with fresh U.S. housing numbers.

The broad market index rose 0.4%, while the Nasdaq Composite added 0.6%. The Dow was marginally lower.

Thursday’s session points to a positive finish for the month for Wall Street, despite a string of declines raising questions around the sustainability of the AI-driven rally. The Nasdaq is leading the pack with a 5.2% gain. The S&P 500 has jumped 4.6%, while the Dow has added 1.8%. This would mark the Dow’s first four-month winning streak since May 2021.

Data showed the Federal Reserve’s preferred measure of inflation was stubbornly above the central bank’s target in January, but at least didn’t exceed Wall Street forecasts.

The core personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge, increased by increased 0.4% for the month and 2.8% from a year ago. That matches Dow Jones estimates. Headline PCE, which includes food and energy categories, increased 0.3% monthly and 2.4% on a 12-month basis, compared to respective estimates for 0.3% and 2.4%.

Personal income rose 1% month-over-month in January, well above the forecast for 0.3%.

In other economic data today, pending home sales posted a surprise drop in January amid swings in mortgage rates. Pending sales declined 4.9% for the month, much worse than the 2% projected increase from the Dow Jones consensus.

Snowflake shed about 18.5% after announcing the retirement of its CEO and sharing disappointing product revenue guidance. Meanwhile, Okta surged more than 19% on strong results.

Weight loss drugmaker Viking Therapeutics announced its intention to raise cash in a $550 million offering. The Company is hoping to take advantage of the intense interest that has followed the release of phase 2 clinical trial results on Tuesday. Viking is developing a GLP-1/GIP receptor that is showing strong early results in helping patients with obesity.

Viking Therapeutics shares are down about 15% in trading Thursday. That’s about 19% off this week’s high, but the stock’s price is still more than double where it began the week.

Key international data releases include China's February Caixin manufacturing PMI at 12:45 PM, Eurozone's February CPI and January jobless rate at 9 PM, and US January construction spending, University of Michigan's February consumer sentiment final, as well as Markit's February final PMIs for the UK and US.

In local news, NZ February ANZ consumer confidence at 8am and January building permits at 8.45am

Figures around the globe

European markets closed mixed. London’s FTSE added 0.07 per cent, Frankfurt gained 0.44 per cent, and Paris closed 0.34 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei fell 0.11 per cent, Hong Kong’s Hang Seng lost 0.15 per cent and China’s Shanghai Composite gained 1.94 per cent..

Yesterday, the Australian share market closed 0.50 per cent higher at 7,698.70.

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