Stocks rebounded on Friday, rallying after 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 followed 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.
The Dow Jones Industrial Average (^DJI) was up 0.5%, or more than 150 points. The S&P 500 (^GSPC) added 1%, while the tech-heavy Nasdaq Composite (^IXIC) climbed nearly 2% after all the major gauges closed in the red on Thursday.
All three averages closed in positive territory over the week.
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