Conflicting indicators for US economy

Wall Street was hit hard on Thursday as new data revealed that the US economy is stronger than previously thought. The news came as a shock to many investors who were banking on a rate cut from the Federal Reserve in the near future.

The latest survey of US business activity for May exceeded expectations, while jobless numbers continued to decline for the second week in a row. This unexpected positive economic data sent shockwaves through the markets, causing US bond yields to jump sharply and the US dollar to rise.

Commodities were also affected by the news, with gold slumping $62 an ounce and copper prices taking a hit. Oil prices fell for the fourth consecutive day, while iron ore saw a 2% drop in trading.

Despite the overall negative trend, tech giant Nvidia managed to buck the trend by jumping 9.3% in regular trading, reaching a record high before slightly dipping in after-hours trading. This surge added close to $200 billion to the market’s capitalization, but it was not enough to offset the broader market sell-off.

Investors are now reevaluating their expectations for a rate cut in September, as the strong economic data has raised doubts about the Federal Reserve’s next move. With bond yields on the rise and commodity prices falling, the future of the markets remains uncertain.

The upcoming personal consumption expenditure data report and the second reading on US first-quarter economic growth will be crucial in determining market sentiment in the coming days. Investors will be closely watching for any signs of easing cost pressures to calm their nerves and stabilize the markets.