U.S. stocks declined on Thursday as investors digested the latest round of GDP data. Estimates on Thursday showed that the U.S. economy’s GDP for the second quarter came in at an unchanged 2.1%.
The tech-heavy Nasdaq Composite index declined by around 0.3%, while the benchmark S&P 500 and the Dow Jones Industrial Average edged 0.1% lower. Markets find themselves under pressure as the price of oil continues to surge toward the $100 per barrel mark. After hitting new 2023 highs on Wednesday, oil prices touched $95 per barrel on Thursday morning before retreating to around $92.93 per barrel. Brent crude futures were last at $95.91 after hitting $97 per barrel.
Following the release of such economic data, the Federal Reserve continues to stand by its belief that interest rates will likely need to remain higher for longer in order to keep inflation down. Further Fed movements will also be influenced by the release of the latest PCE inflation reading, which is the Fed’s preferred inflation gauge.