Market Highlights

A solid economic reading drove stocks to fresh all-time highs, but Wall Street traders refrained from making big moves before inflation data that could bring more clues on the pace of Federal Reserve rate cuts. Short-dated Treasury yields rose. The dollar fell. Just 24 hours ahead of the release of the Fed’s favored price gauge, data showed the US economy expanded faster than initially estimated, underscoring the resilience of America’s primary growth engine — consumer Spending Stocks drifted lower as traders held back from bold wagers ahead of Friday’s US inflation data that may test current bets on how quickly the Federal Reserve can adjust interest rates lower.