Stock Market Today: Stocks Struggle for Direction on Inflation Concerns
Another hot inflation reading from overseas and some real estate weakness at home made for a choppy session.


Stocks were choppy in light trading Wednesday as worries about inflation resurfaced and new home sales plunged.
Inflation remained in focus early in the session after Australia followed Canada by posting hotter-than-expected consumer price data. Market participants are hoping the readings don't portend bad things for the highlight of this week's economic calendar: the May Personal Consumption and Expenditures (PCE) Price Index. Also known as the Fed's preferred inflation gauge, this is where the central bank sets its long-term target of 2%.
In other macro news, real estate weakness persists. The annualized pace of new home sales fell 11.3% month-over-month in May to 619,000, the Census Bureau reported. Total sales fell well short of analysts' estimate for 636,000.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"New home sales reflect the pressure that lofty mortgage rates and tighter credit conditions have on the real estate sector," writes José Torres, senior economist at Interactive Brokers. "On a year-over-year basis, the pace of national new home sales fell 16.5%. Meanwhile, the median home sales price and inventory increased month-over-month."
Stocks on the move
FedEx (FDX) stock surged nearly 16% after the logistics giant beat top- and bottom-line expectations for its fiscal 2024 fourth quarter and issued an outlook for fiscal 2025 that was in-line with analysts' expectations.
"There's a lot of good stuff happening at FedEx right now, in our view, and provided management can stay on track, we continue to like the opportunity here," said Stifel analyst J. Bruce Chan (Buy).
Southwest Airlines (LUV) stock gapped lower by more than 4% at the open after the airline cut its second-quarter revenue guidance. Southwest is now calling for revenue per available seat mile to decline 4% to 4.5%, compared with its previous outlook for a drop of 1.5% to 3.5%. By session's end, however, LUV stock was off just 0.2%.
Today's news comes just weeks after activist investor Elliott Investment Management revealed a $2 billion stake in Southwest. Elliott plans to engage with the management team of Southwest to push for changes to reverse the airline's recent underperformance, and it may have more ammunition following the Q2 guidance shift.
Meanwhile, in great news for shareholders in beleaguered Rivian (RIVN), the stock soared more than 23% after the EV maker announced a partnership with Volkswagen. The deal includes a total investment of $5 billion by Volkswagen and the formation of a joint venture to accelerate the development of software for both automakers.
Under the terms of the agreement, Volkswagen will make an initial investment of $1 billion in Rivian through an unsecured convertible note. Volkswagen will invest an additional $1 billion in both 2025 and 2026. The German automaker will also make an extra $2 billion investment in 2026 as part of a joint venture that will "create next-generation software-defined vehicle (SDV) platforms to be used in both companies' future electric vehicles."
Wedbush analyst Daniel Ives (Outperform, the equivalent of a Buy) called this "a core game changer for Rivian" that changes not only the company's capital structure but also the Street's view at a critical time.
At the closing bell, the blue-chip Dow Jones Industrial Average was essentially unchanged at 39,127 (+0.04%). The broader S&P 500 rallied late in the day to finish up less than 0.2% at 5,477, while the tech-heavy Nasdaq Composite once again led all comers, rising 0.5% to end at 17,805.
Related content
- What Chipotle Stock's 50-for-1 Split Means for Investors
- If You'd Put $1,000 Into Nvidia Stock 20 Years Ago, Here's What You'd Have Today
- Best High-Yield ETFs To Buy Now
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Dan Burrows is Kiplinger's senior investing writer, having joined the publication full time in 2016.
A long-time financial journalist, Dan is a veteran of MarketWatch, CBS MoneyWatch, SmartMoney, InvestorPlace, DailyFinance and other tier 1 national publications. He has written for The Wall Street Journal, Bloomberg and Consumer Reports and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among many other outlets. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange.
Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.
In his current role at Kiplinger, Dan writes about markets and macroeconomics.
Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.
Disclosure: Dan does not trade individual stocks or securities. He is eternally long the U.S equity market, primarily through tax-advantaged accounts.
-
Married? Five Ways to Ensure Your Estate Plans Work in Tandem
Getting on the same page now means fewer potential problems when it counts.
By Kiplinger Advisor Collective
-
12 Investments No Retiree Should Make
In retirement, when it's wise to take fewer risks with your nest egg, some investments are just nuts.
By David Rodeck
-
Before You Invest Like a Politician, Consider This Dilemma
As apps that track congressional stock trading become more popular, investors need to take into consideration some caveats.
By Ryan K. Snover, Investment Adviser Representative
-
How to Put Together Your Personal Net Worth Statement
Now that tax season is over for most of us, it's the perfect time to organize your assets and liabilities to assess your financial wellness.
By Denise McClain, JD, CPA
-
Stock Market Today: Trump Retreats, Markets Rejoice
Stocks rally, yields soften, the dollar rises, and even beaten-down names enjoy the wages of potential trade peace.
By David Dittman
-
Tesla Stock Pops as Elon Musk Promises DOGE Draw Back
Tesla reported a sharp drop in first-quarter earnings and sales, as the EV maker suffered a backlash to its CEO's political ambitions.
By Karee Venema
-
Bouncing Back: New Tunes for Millennials Trying to Make It
Adele's mournful melodies kick off this generation's financial playlist, but with the right plan, Millennials can finish strong.
By Alvina Lo
-
Early-Stage Startup Deals: How Do Convertible Notes Work?
Some angel investors support early startups by providing a loan in exchange for a convertible note, which includes annual interest and a maturity date.
By Murat Abdrakhmanov
-
Stock Market Today: Stocks Soar on China Trade Talk Hopes
Treasury Secretary Bessent said current U.S.-China trade relations are unsustainable and signaled hopes for negotiations.
By Karee Venema
-
How Can Investors Profit From AI's Energy Use?
Global energy demand is expected to grow by leaps and bounds over the next several years as AI usage accelerates. Here's how to get a piece of the pie.
By Jacob Schroeder