- US stocks rose Friday, with the Dow Jones closing at a record high for the second day in a row.
- The S&P 500 and the Dow achieved a four-month win streak in August amid renewed hopes for a soft landing.
- Investors anticipate a Fed rate cut next month after PCE inflation data met expectations.
US stocks traded higher on Friday, with the Dow Jones Industrial Average closing at a record high for the second day in a row and the fourth day this week.
The S&P 500 and the Dow both ended August with their fourth-straight monthly gain, as hope that the US economy can avoid a recession was renewed during the month following a brief spasm of volatility spurred by a weak July jobs report.
Investors were further comforted Friday by Friday's fresh inflation data, with the personal consumption expenditures index rising 0.2% and 2.5% on a monthly and yearly basis, respectively, in line with economist estimates.
Investors viewed the inflation data as solidifying the Federal Reserve's expected interest rate cut at its September 18 policy meeting.
"Optimism regarding the Fed's upcoming easing cycle is growing after this morning's PCE data and Consumer Sentiment report reflected dwindling price pressures and downwardly revised inflation expectations," Interactive Brokers economist José Torres said.
Looking ahead to next week, investors will are eagerly anticipating the August jobs report, set to be released Friday, September 6.
If the report shows any weakness in the labor market, it could drive the Fed to implement a 50 basis point interest rate cut next month, instead of the expected 25 basis point cut.
Economists expect the US economy added 162,000 jobs in August, which should push the unemployment rate down slightly to 4.2% from 4.3%.
Here's where US indexes stood at the 4:00 p.m. closing bell on Friday:
- S&P 500: 5,648.26, up 1.01%
- Dow Jones Industrial Average: 41,563.08, up 0.55% (+228.03 points)
- Nasdaq composite: 17,713.63, up 1.13%
Here's what else is going on:
- Some Chinese banks are so fearful of sanctions that they're returning payments for goods that have reached Russia.
- OpenAI is raising more money, and potential new investors could reportedly include Apple and Nvidia.
- Here are the five takeaways from Kamala Harris and Tim Walz's first joint interview since launching their campaign.
- The EU will push ahead with plans to use frozen Russian funds to aid Ukraine despite US concerns.
- Nvidia could turn into a $10 trillion company driven by its next-gen Blackwell chip, according to a tech analyst.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil decreased 3.32% to $73.39 a barrel. Brent crude, the international benchmark, dropped 2.61% to $76.76 a barrel.
- Gold was lower by 1.03% to $2,533.90 an ounce.
- The 10-year Treasury yield jumped five basis points to 3.917%.
- Bitcoin declined 0.86% to $58,861.