Wall Street edges lower, ASX set to retreat

A pullback in big technology stocks, which have been big winners in the market’s record-breaking run-up, weighed on the market. Apple fell 1.6 per cent, Microsoft lost 1.3 per cent and Meta Platforms ended 3 per cent lower.

The late-afternoon burst of selling may reflect traders taking profits, with the market near all-time highs, or rebalancing their portfolios as the second quarter comes to a close, said Ross Mayfield, investment strategy analyst at Baird.

“It wouldn’t surprise me at all if there was some profit-taking today, especially out of the names that have really run up,” Mayfield said.

The market headed higher in the early going following a closely watched report that showed inflation continues easing. Investors are hoping that cooling inflation will prompt the Federal Reserve to start cutting interest rates, which remain at their highest level in more than 20 years.

Consumer prices rose 2.6 per cent in May compared with a year ago, according to the latest personal consumption expenditures index, or PCE. That signalled continued easing from a 2.7 per cent reading in April and is sharply lower than the peak reading of 7.1 per cent two years ago.

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The strong jobs market has been another big factor driving economic growth, but that has also shown signs of weakening. Wall Street will get updates on job openings, unemployment, and hiring next week.

More retailers, especially those focusing on discretionary items, have been warning about a slowdown in consumer spending. Consumers barely increased spending in May from April, according to the latest government retail sales report.

The S&P 500 closed out its final trading day of June with a 3.5 per cent gain for the month. The index is up about 14.5 per cent so far this year.

The Nasdaq gained about 6 per cent for the month and is up 18.1 per cent this year.

With AP

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