U.S. Stocks Seeing Modest Strength Following Inflation Data

WASHINGTON (dpa-AFX) - Stocks are seeing modest strength during trading on Friday, with the major averages all moving to the upside after ending yesterday's choppy trading session narrowly mixed.

The major averages have pulled back off their highs of the session but currently remain in positive territory. The Dow is up 136.52 points or 0.3 percent at 47,987.46, the Nasdaq is up 65.97 points or 0.3 percent at 23,571.10 and the S&P 500 is up 20.57 points or 0.3 percent at 6,877.69.

The strength on Wall Street comes following the release of closely watched consumer price inflation data that largely came in line with economist estimates.

The Commerce Department said its personal consumption expenditures (PCE) price index climbed by 0.3 percent in September, matching the growth seen in August along with economist estimates.

The annual rate of growth by the PCE price index ticked up to 2.8 percent in September from 2.7 percent in August, which was also in line with expectations.

Excluding food and energy prices, the core PCE price index rose by 0.2 percent in September, matching the increases seen in the two previous months as well as economist estimates.

The annual rate of growth by the core PCE price index edged down to 2.8 percent in September from 2.9 percent in August. Economists had expected the annual rate of growth to remain unchanged.

The unexpected slowdown in the annual rate of core price growth has reinforced recent optimism about the outlook interest rates ahead of next week's Federal Reserve meeting.

Buying interest has remained somewhat subdued, however, as the Fed was already widely expected to cut rates by a quarter point.

CME Group's FedWatch Tool is currently indicating an 87.2 percent chance the Fed will lower interest rates by another quarter point next week.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan's Nikkei 225 Index slumped by 1.1 percent, while South Korea's Kospi surged by 1.8 percent.

The major European markets have also turned mixed on the day. While the U.K.'s FTSE 100 Index is down by 0.3 percent, the French CAC 40 Index is just above the unchanged line and the German DAX Index is up by 0.8 percent.

In the bond market, treasuries are extending the downward move seen in the previous session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.9 basis points at 4.127 percent.

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US Dollar Index Holds Near 1-Month Low

Trading Economics

The dollar index held below 99 on Friday, a one-month low, as the prospect of more rate cuts by the Federal Reserve contrasted with those from other central banks.

Rate futures maintained the consensus of a 25bps cut by the Fed in its December meeting, bolstered after a series of pessimistic labor market data and dovish comments from FOMC Governor Waller and New York Fed President Williams. Data from the ADP unexpectedly pointed to a reduction in private payrolls during November, while outstanding unemployment claims held near four-year highs.

In the meantime, the University of Michigan consumer confidence survey reflected strong pessimism for labor expectations, despite the slight improvement, while the lack of upside surprises for September's PCE price index favored the argument for dovish FOMC members.

Conversely, ECB policymakers showed some consensus that rates will remain stable in the meantime on inflation risks, while the BoJ signaled it will deliver a hike this month.

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DAX Gains Ground

Trading Economics

Frankfurt's DAX extended early gains to cross de 24,100 mark on Friday afternoon, a level last seen in mid-November, on course for a second straight weekly gain.

The latest PCE inflation data from the US supported expectations of a Fed rate cut next week.

Meanwhile, the Eurozone GDP growth was revised slightly higher to 0.3% in Q3 from the preliminary estimate of 0.2% and above Q2's 0.1% expansion.

Traders also remained focused on geopolitical developments regarding a potential Ukraine peace deal.

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US Stocks Extend Gains After PCE

Trading Economics

US stocks extended gains on Friday, with the S&P 500 up 0.5%, the Nasdaq rising 0.6%, and the Dow Jones advancing about 220 points, after PCE inflation data came in roughly in line with expectations, reinforcing bets on another Fed rate cut next week.

Markets are pricing in roughly an 87% chance of a 25bps reduction.

Meanwhile, the Michigan consumer sentiment improved for the first time in five months and inflation expectations slowed.

Communication services and tech were the top performing sectors.

Megacaps were mostly higher, including Microsoft (0.4%), Amazon (0.7%), Alphabet (1.3%), Meta (0.7%), Broadcom (2.7%) and Tesla (0.4%) while Apple was little changed and Nvidia lost 0.2%.

Netflix shares cut most of the early losses to trade 0.2% lower after the company announced a deal to acquire Warner Bros.

Discovery.

For the week, the S&P 500 is up 0.1%, on track for its first back-to-back weekly gain since October.

The Nasdaq has risen 0.6%, and the Dow Jones is up 0.3% so far.

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US Stocks Rise, PCE Eyed

Trading Economics

US stocks were higher on Friday, with the S&P 500 adding 0.3%, the Nasdaq rising 0.5%, and Dow Jones gaining about 80 points.

Traders are awaiting the delayed PCE report which includes the Federal Reserve’s preferred inflation gauge, though the data is unlikely to shift expectations for next week’s policy decision.

Markets are pricing in roughly an 87% chance of another Fed rate cut, helping to support sentiment.

Tech and communication services were the top performing sectors while financials and industrials lagged.

Megacaps were mostly higher, including Microsoft (0.3%), Amazon (0.7%), Alphabet (1.3%), Meta (0.7%), Broadcom (2.7%) and Tesla (0.4%) while Nvidia was little changed and Apple lost 0.4%.

Meanwhile, Netflix shares fell about 2.5% after the company announced a deal to acquire Warner Bros.

Discovery.

For the week, the S&P 500 is up 0.1%, on track for its first back-to-back weekly gain since October.

The Nasdaq has risen 0.6%, and the Dow Jones is up 0.3% so far.

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The S&P 500 Hit 4-week High

Trading Economics

US500 increased to 6871.00 Index Points, the highest since November 2025.

Over the past 4 weeks, United States Stock Market Index (US500) gained 2.04%, and in the last 12 months, it increased 12.59%.

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Markets Wait For U.S. PCE Inflation

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