Stock market today: US indexes rally after cool inflation data

Stock market today: US indexes rally after cool inflation data

U.S. Federal Reserve Chairman Jerome Powell arrives at a news conference at Federal Reserve Headquarters December 13, 2023 in Washington, DC.Win McNamee/Getty Images

  • US indices recovered after a promising PCE report.

  • The S&P 500 and Dow Jones rallied, while the Nasdaq traded mostly flat.

  • Investors were encouraged by inflation that met expectations, increasing the Fed’s chances of cutting rates.

U.S. indexes ended mostly higher on Friday after a key inflation indicator cheered investors.

The S&P 500 and Dow Jones Industrial Average rose, while the Nasdaq Composite remained flat. Nvidia, MicrosoftAnd Amazon everything fell.

Friday’s report also offered investors relief on inflation, with the personal consumption expenditures report in line with expectations. As expected, core PCE rose 0.2% in April. On an annualized basis, it rose 2.8%, slightly above the consensus of a 2.7% gain.

“The stock market is keen to see a slowdown in economic growth and today’s PCE data provides a report of a soft landing,” said David Donabedian, chief investment officer of CIBC Private Wealth US.

This means that it is still possible for the Federal Reserve to cut interest rates this year. Adding to this insight was last week’s downward revision of GDP, which showed consumer spending was weaker than expected.

“The revised GDP report released Thursday is also expected to keep on the table the possibility of a 1-2 rate cut this year, as consumer spending cooled in the first quarter. Although these latest economic reports could maintain uptrend within US large caps, US small caps “Market cap companies, which are more rate sensitive, may remain stalled until we have a better indication of when the first decline rates will take place,” said Eric Sterner, CIO at Apollon Wealth Management.

Here’s where the US indexes stood at the 4:00 p.m. closing bell on Friday:

Here’s what happened today:

In commodities, bonds and cryptocurrencies:

  • West Texas Intermediate Crude oil fell 1.41% to $77.10 a barrel. Brent crudethe international benchmark, slipped 0.71% to $81.29 per barrel.

  • Gold fell 1.12% to $2,371 an ounce.

  • The 10-year Treasury yield slipped five basis points to 4.49%.

  • Bitcoin fell 1% to $67,651.

Read the original article on Business Insider

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