Stocks close higher Friday after in-line inflation data, but S&P 500 snaps 3-week winning streak
The Dow Jones Industrial Average climbed on Friday following the release of crucial inflation data.
The 30-stock index advanced 299.97 points, or 0.65%, to close at 46,247.29. The S&P 500 added 0.59% to close at 6,643.70, while the Nasdaq Composite rose 0.44% to settle at 22,484.07.
August’s personal consumption expenditures price index, the Federal Reserve’s preferred inflation measure, showed that core inflation – a measure excluding food and energy costs – ran at a 2.9% seasonally adjusted annual rate. That was in line with what economists polled by Dow Jones were expecting.
The all-items index showed an annual rate of 2.7% as well as a monthly gain of 0.3%, in line with expectations as well. Markets continue to price in two quarter-point rate cuts at the Fed’s upcoming meetings, per the CME FedWatch tool, which is what the central bank has projected.
The outcome swayed market reaction a bit, with stock futures ticking higher, and came on the heels of solid jobs data released Thursday and a strong upward revision in second-quarter gross domestic product to 3.8% slightly dampened bullish sentiment. Investors fear fewer jobless claims could mean that the economy is in decent shape and therefore give the Fed less reason to cut interest rates.
Source : Cnbc.com
