China stocks have been mixed due to disappointing data and tariff talk in export markets.
Commodity trades saw oil prices edging higher due to strong U.S gasoline demand.
Non-housing services and motor vehicle insurance are predicted to increase in June.
On Thursday, investors will receive the June Consumer Price Index (CPI) report.
The CPI is expected to show headline inflation of 3.1% year-over-year and 0.2% month-over-month.
The S&P 500, Nasdaq, and Dow Jones Industrial Average all closed higher on Wednesday.
U.S earnings season begins with results from Delta Air Lines and PepsiCo, followed by bank results on Friday.
On Thursday, investors will digest one of the most important data points that will shape future Federal Reserve interest rate policy: June's Consumer Price Index (CPI). The inflation report, set for release at 8:30 a.m. ET, is expected to show headline inflation of 3.1% over last year and 0.2% over the prior month, in line with recent positive data. These anticipated numbers are not quite as low as May’s, but it would be a good print for the Fed. The economists predict that non-housing services (and motor vehicle insurance) will have increased in June, indicative of the “bumps” path forward when it comes to price stabilization. However, equities in Japan, Australia and China rose ahead of this data release. The S&P 500 surpassed the 5,600 level as stocks closed higher on Wednesday with the broad market index advancing 1.02% to finish at 5,633.91. The technology-heavy Nasdaq added 1.18% to close at 18,647.45, while the Dow Jones Industrial Average climbed 429.39 points or 1.09% to reach 39,721.36.
In addition to the US CPI data, traders are also focusing on U.S earnings season which will begin with results from Delta Air Lines and consumer bellwether PepsiCo, followed by bank results on Friday. China stocks have been mixed due to a string of disappointing data and talk of tariffs in its major export markets. The China GDP print is due on Monday, while Hong Kong's Hang Seng rose 1% and blue-chip CSI300 climbed 0.4%. Commodity trades also saw oil prices edging higher on signals of strong U.S gasoline demand, with Brent futures rising 35 cents or 0.4% to $85.43 a barrel and U.S crude climbing 36 cents or 0.5% to $82.47 a barrel.
Overall, the market has been buoyed by positive data and expectations of interest rate cuts, with the S&P 500 reaching new highs for six consecutive days. However, traders remain cautious ahead of the US CPI release and other key events in the coming days.
S&P 500 and Nasdaq Composite set new record-high closes
Brian Belski of BMO Capital Markets is bullish on Spotify and considers it the ‘Kleenex of streaming'
HubSpot slid in afternoon trading following reports that Alphabet is holding off on plans to buy the company
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Brian Evans and Samantha Subin's article contains some instances of informal fallacies, specifically an appeal to authority in the form of a quote from Brian Belski. However, these instances do not significantly impact the overall content of the article. No formal fallacies were identified.
>Brian Belski, chief investment strategist of BMO Capital Markets, is bullish on Spotify as the music streaming service races ahead this year.<
