04:56 PM EDT, 06/27/2024 (MT Newswires) -- US benchmark equity indexes closed higher Thursday after a Federal Reserve official said monetary policy easing is still likely this year, while markets assessed the latest economic data.

The Nasdaq Composite rose 0.3% to 17,858.7. The Dow Jones Industrial Average and the S&P 500 advanced 0.1% each to 39,164.1 and 5,482.9, respectively. Real estate and consumer discretionary led the gainers among sectors, while consumer staples saw the steepest decline.

Atlanta Fed President Raphael Bostic said he still believes the central bank's Federal Open Market Committee could start lowering its benchmark lending rate in the fourth quarter.

"Taking all the circumstances into account, I continue to believe conditions will likely call for a cut in the federal funds rate in the fourth quarter of this year," Bostic said. "There are plausible scenarios in which more cuts, no cuts, or even a raise could be appropriate. I will let the data and conditions on the ground be my guide."

In a bid to combat inflation, the FOMC tightened monetary policy by 525 basis points between March 2022 and July 2023, but has since kept interest rates unchanged, with its latest pause coming earlier this month.

The US 10-year yield fell three basis points to 4.29% Thursday, while the two-year rate retreated 3.7 basis points to 4.71%.

The US economy grew at a 1.4% annualized rate in the first quarter, up from a 1.3% gain projected previously, according to a third estimate by the Bureau of Economic Analysis. The latest reading matched a consensus compiled by Bloomberg and marked the weakest quarterly pace since the second quarter of 2022.

"The US economy is on track for a soft landing...just what the Fed wants to see," BMO Capital Markets said in a note to clients.

US durable goods orders unexpectedly rose in May led by transportation equipment, Census Bureau data showed.

Pending home sales in the US saw a surprise decline last month as demand cooled while trends suggest price appreciation could ease in the coming months, the National Association of Realtors said.

Manufacturing activity in the US Midwest region fell into deeper contraction territory in June as shipments swung negative and production skidded, the Kansas City Fed said.

West Texas Intermediate crude oil rose 1.2% to $81.88 per barrel.

In company news, Palo Alto Networks ( PANW ) shares rose 4.8%, the second-best performer on the S&P 500 and the Nasdaq, as Baird adjusted its price target on the stock to $360 from $340 and maintained its outperform rating.

McCormick ( MKC ) was among the top gainers on the S&P 500, up 4.3%, after the spices and seasonings producer maintained its full-year outlook amid improving volume trends as fiscal second-quarter results came in better than expected.

Walgreens Boots Alliance ( WBA ) shares slumped 22%, the steepest decline on the S&P 500 and the Nasdaq, after the drug-store operator slashed its full-year earnings outlook amid "challenging" pharmacy industry trends and a worsening retail environment. The company said it plans to close some underperforming US stores after quarterly profit missed market estimates.

Gold rose 1% to $2,337 per troy ounce, while silver advanced 0.1% to $29.29 per ounce.