Global stock indexes edged lower on Friday, reversing early gains, while Treasury yields rose and the U.S. dollar declined as investors absorbed data that showed U.S. monthly inflation was unchanged in May.
The flat reading in the U.S. personal consumption expenditures (PCE) price index last month followed an unrevised 0.3% gain in April, the data showed.
In the 12 months through May, the PCE price index increased 2.6% after advancing 2.7% in April. Last month’s inflation readings were in line with economists’ expectations.
The data fueled optimism for some investors that the Federal Reserve could begin cutting interest rates in September.
The MSCI world stock index, S&P 500 and Nasdaq all hit record highs in early trading but then retreated.
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