US stocks were mixed on Thursday after the S&P 500 and Nasdaq hit fresh record highs at the open after softer-than-expected inflation data bolstered hopes for Federal Reserve rate cuts.
At 9:48 a.m. ET, the Dow Jones Industrial Average was down 9.47 points, or 0.02%, at 39,711.89, the S&P 500 was up 2.36 points, or 0.04%, at 5,636.27, and the Nasdaq Composite was down 7.70 points, or 0.04%, at 18,639.74.
At the opening bell, the S&P 500 was higher by 1.30 points, or 0.02%, at 5,635.21, while the Nasdaq Composite gained 11.80 points, or 0.06%, to 18,659.25. The Dow Jones Industrial Average fell 26.18 points, or 0.07%, to 39,695.18.
The consumer prices declined in June, for the first time in four years, on lower gasoline costs and moderating rents.
The Consumer Price Index (CPI) dipped 0.1% last month, the Labor Department’s Bureau of Labor Statistics said.
The Russell 2000 index of smaller companies jumped 2.1% to lead the market.
Megacap stocks fell as investors preferred rate-sensitive smallcap stocks.
Shares of Apple, Microsoft, Alphabet and Nvidia fell between 0.5% and 0.7%.
PepsiCo lost 1.4% despite beating profit forecasts for the spring.
Delta Air Lines plunged 8.1% after reporting slightly weaker revenue and profit.
American Airlines Group, Spirit Airlines, United Airlines Holdings, Alaska Air Group and JetBlue Airways slipped between 4% and 6%.
In the bond market, yields tumbled after the inflation data was released.
The yield on the 10-year Treasury dropped to 4.19% from 4.28% late on Wednesday. The 2-year Treasury yield fell to 4.51% from 4.62%.
Bullion
Gold prices jumped more than 1% on Thursday to reclaim the $2,400 per ounce level after US consumer prices data was declared.
Spot gold was up 1.5% at $2,406.99 per ounce by 05:56 a.m. ET (1256 GMT). US gold futures added 1.4% to $2,412.60.
Spot silver soared 2.7% to $31.63 per ounce.
Crude oil
Oil prices gained on Thursday with the Brent benchmark holding above $85 a barrel.
Brent futures added 27 cents, or 0.3%, to $85.35 a barrel by 1305 GMT. US West Texas Intermediate (WTI) crude rose 29 cents, or 0.4%, to $82.39.
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