Stocks rebounded Friday afternoon, with the Federal Reserve’s preferred inflation measure showing a continued cooling in pricing pressures in the US economy.
The Personal Consumption Expenditures (PCE) Price Index out Friday morning showed that on a “core” basis — which strips out food and energy — prices rose 4.1% over the prior year in June, the least since September 2021.
The data follows CPI numbers earlier this month that showed core inflation rose 4.8% over the prior year. On a “headline” basis — which includes food and energy — both PCE and CPI showed prices rose 3% over last year.
Earlier in the morning, a surprise Bank of Japan rate shift rattled markets.
As of midday, the Dow Jones Industrial Average (^DJI) was up 0.6%, or more than 200 points. The S&P 500 (^GSPC) added 1.1%, while tech-heavy Nasdaq Composite (^IXIC) futures climbed 2.0% after all the major gauges closed in the red on Thursday.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance