U.S. Stocks Close Mixed as Consumer Sentiment Hits Four-Month Low

U.S. stock markets closed mixed recently, with the Nasdaq 100 hitting new record highs while the Dow Jones Industrial Average and S&P 500 experienced slight declines. The mixed performance comes amid rising bond yields and a notable drop in consumer sentiment to a four-month low, reflecting growing concerns about economic conditions and inflation. Investors are anticipating the Federal Reserve's upcoming meeting, with widespread expectations of a 25 basis point rate cut to support the economy, and some speculation about a possible larger cut due to soft inflation and labor market data. The University of Michigan's consumer sentiment index fell more than expected, signaling increased worries among consumers, while inflation expectations showed mixed signals with longer-term expectations rising. Wholesale price data also surprised on the downside, reinforcing the likelihood of Fed easing to address economic softness. Overall, markets remain cautious but supported by hopes for monetary policy easing and contained inflation pressures.