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US indices rose after a promising personal consumption expenditures report.
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The S&P 500 and Dow Jones rose, while the Nasdaq was mostly flat.
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Investors were encouraged by inflation that met expectations, increasing the chances of an interest rate cut by the Federal Reserve.
US indexes closed mostly higher on Friday after a key inflation gauge cheered investors.
The S&P 500 and the Dow Jones Industrial Average rose, while the Nasdaq Composite was flat. Nvidia, MicrosoftAnd Amazon Everything fell.
Friday also provided investors with relief from inflation, as the personal consumption expenditures report came in line with expectations. As expected, the core PCE index rose 0.2% in April. On an annual basis, it rose by 2.8%, slightly higher than the expected 2.7%.
“The stock market wants to see a slowdown in economic growth, and today's personal consumption expenditures data delivered a muted report,” said David Donabedian, US chief investment officer at CIBC Private Wealth.
This means it is still possible that the Fed will cut interest rates this year. Adding to this idea was last week's downward revision to GDP, which showed that consumer spending was weaker than expected.
“Thursday's revised GDP report should also keep the possibility of 1-2 interest rate cuts on the table this year as consumer spending slows in the first quarter. While these latest economic reports may keep the bulls within the large stocks In the United States, small cap companies, which are more interest rate sensitive, may remain on hold until we have a better indication of when the first rate cut will occur, said Eric Sterner, CIO at Apollon Wealth Management. Benefit.
Here is where US indices stand at the closing bell at 4:00pm on Friday:
Here's what else happened today:
In commodities, bonds and cryptocurrencies:
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West Texas Intermediate The price of crude oil fell by 1.41% to $77.10 per barrel. Brent crudeThe international index fell 0.71% to $81.29 per barrel.
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gold The price of gold fell by 1.12% to $2,371 per ounce.
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The yield on the 10-year Treasury note fell by five basis points to 4.49%.
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Bitcoin It fell 1% to $67,651.
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