Wed Nov 27 13:30:00 UTC 2024: ## US Stocks Hold Near Record Highs as Inflation Data Awaited

**NEW YORK** – US stocks traded near record highs on Wednesday, with investors awaiting key economic data for clues on the Federal Reserve’s next move on interest rates. Futures for the S&P 500 and Dow Jones Industrial Average showed little change, while Nasdaq 100 futures dipped slightly. The muted trading activity comes as markets prepare for the Thanksgiving holiday.

The focus is squarely on the October Personal Consumption Expenditures (PCE) index, the Fed’s preferred inflation gauge. Economists predict a 2.8% annual core PCE increase, potentially dampening expectations for a December interest rate cut. The CME FedWatch Tool currently shows a 34% chance of the Fed holding rates steady, up from 24% last month.

Further economic news included an unchanged second estimate of third-quarter GDP at 2.8% annual growth and a decrease in weekly jobless claims to 213,000, a seven-month low.

However, the tech sector showed some weakness. Dell’s stock plummeted over 10% following a disappointing quarterly revenue report, reflecting flagging PC demand. HP also experienced a stock decline after its earnings announcement.

The appointment of Jamieson Greer as US Trade Representative is also causing market uncertainty. Greer’s involvement in previous tariff policies under Trump raises concerns about potential future trade conflicts and their impact on businesses. Automakers like GM and Ford, already hit hard by Trump’s tariff threats, saw significant stock drops earlier this week. Several retail CEOs expressed concerns about potential tariff-related cost increases being passed onto consumers.

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