Wall Street finished mostly flat on Thursday as investors awaited new inflation data. The Nasdaq managed to slightly gain as economic data revealed a sustained slowdown, raising investors' hopes for rate reductions.

"The market is in a bit of a holding pattern here for the personal consumption expenditures (PCE) because there haven't been a lot of big catalysts," said Ross Mayfield, investment strategy analyst at Baird, about the release of the monthly PCE price index – the Federal Reserve's preferred inflation gauge – on Friday.

Data showed new orders for key US-manufactured capital goods unexpectedly fell in May, while core durable goods orders fell 0.1 percent versus forecasts for a 0.2 percent rise, boosting investor beliefs that a weaker economy could prompt the Federal Reserve to cut interest rates in September.

Weekly jobless claims fell to 233,000, missing expectations of 236,000. Furthermore, a final print showed that US economic growth increased more than anticipated in the first quarter.

Benchmark 10- and 2-year yields, which move inversely to prices, dropped after the data showed a continued but moderated slowdown in economic activity, while the 7-year yields edged lower after a US$44 billion auction.

Megacap stocks, such as Alphabet and Meta Platforms, firmed as US Treasury yields slipped. Amazon.com rose after hitting US$2 trillion in market value for the first time on Wednesday.

The Dow Jones rose 0.11 percent to 39,164. The S&P 500 gained 0.07 percent to end at 5,482, while the Nasdaq gained 0.30 percent to 17,859.

Micron fell after an in-line fourth-quarter revenue forecast disappointed investors hoping for more upside from the memory chipmaker's performance in the artificial intelligence boom.

Nvidia tumbled, continuing its recent turbulent ride. (Reuters)