LIVE MARKETS-Everything good is bad again: US stocks dip as strong data clouds rate cut hopes

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EVERYTHING GOOD IS BAD AGAIN: US STOCKS DIP AS STRONG DATA CLOUDS RATE CUT HOPES

Wall Street notched its third consecutive decline on Thursday after a spate of generally robust economic data seemed to dampen the likelihood that multiple interest rate cuts are still to come this year from the Federal Reserve.

A broad, yet relatively modest selloff dragged all three major U.S. stock indexes lower, with energy .SPNY, tech .SPLRCT and banks .SPXBK providing rare glimpses of green.

The Dow Jones Industrial Average .DJI fell 173.71 points, or 0.38%, to 45,947.57, the S&P 500 .SPX lost 33.17 points, or 0.50%, to 6,604.80 and the Nasdaq Composite .IXIC lost 113.16 points, or 0.50%, to 22,384.70.

The session started in the wake of a robust upward revision to second-quarter GDP, fewer than expected jobless claims, and a surprise jump in new orders for durable goods. Cumulatively, the data painted a portrait of a sturdy U.S. economy, negating any immediate need for additional monetary stimulus from the central bank.

The day marked the return to the good-news-is-bad paradox, and financial markets have consequently lowered their expectations that Powell & Co will follow September's 25 basis point rate cut - its first reduction of the key Fed funds target rate this year - with another one in October, according to CME's FedWatch tool.

Monetary policymakers are not unanimous on the proper way forward; while Stephen Miran, President Trump's recent Fed appointee, continued to press for accelerated policy easing, his colleagues pushed back, preferring a more cautious approach.

On Friday, the Commerce Department's closely watched Personal Consumption Expenditures (PCE) report is expected to show headline inflation heating up, with core inflation (which strips out food and energy prices) inching down on a monthly basis and standing pat at 2.9% year-on-year. Consensus also calls for a minimal slowdown in income growth and in a repeat of July's reading, a 0.5% increase in consumer spending.

Here's your closing snapshot:

(Stephen Culp)

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