Stocks Steady Amid Inflation Concerns and Fed Forecast

U.S. stocks remained fairly stable on Thursday after an initial rebound from Wednesday's decline, following the Federal Reserve's reduced interest rate cut forecast and inflation concerns. Key economic indicators aligned with Fed expectations, impacting market movements, with a slight rise in Treasury yields and mixed performance among company stocks.

On Thursday, U.S. stocks ended largely unchanged, stabilizing after a sharp drop triggered by the Federal Reserve's projection of reduced interest rate cuts and higher inflation next year. Economic indicators, including a drop in weekly initial jobless claims and revised GDP growth, aligned with the Fed's forecast.

Tim Ghriskey, a senior portfolio strategist at Ingalls & Snyder, indicated that the market's response lacked conviction, despite expectations of a stronger rebound following the previous session's sell-off. The S&P 500 and Nasdaq Composite saw slight losses, while the Dow Jones marked a minor increase.

The market anticipates fewer interest rate cuts going forward, with the benchmark 10-year Treasury yield rising to a near seven-month high. While the CBOE volatility index eased, banking stocks benefited from higher yields, though some companies like Micron and Lennar faced setbacks due to underwhelming forecasts and earnings.

(With inputs from agencies.)