Stocks rise as key Fed-watched inflation data keeps cooling

US stocks rose on Friday as the latest reading from a closely watched inflation gauge extended a story of cooling inflation and as investors absorbed the fallout of the Biden-Trump debate.

The S&P 500 (^GSPC) advanced roughly 0.1% after the benchmark closed a step nearer to its record high. The tech-heavy Nasdaq Composite (^IXIC) rose 0.3%, while the Dow Jones Industrial Average (^DJI lost about 0.1%

The gauges are eyeing an upbeat end to a bumpy week that saw the S&P 500 and the Nasdaq come back from a three-day losing streak. While stocks are set to book a stellar first half as they wrap the last trading day of June, those wobbles have fanned fears of a pullback for the rest of the year.

The last significant data point of the first six months of the year came in the form of the the Fed’s preferred inflation gauge. Yahoo Finance’s Josh Schafer reported inflation eased in May as prices increased at their slowest pace since March 2021.

The core Personal Consumption Expenditures (PCE) index, which strips out the cost of food and energy and is closely watched by the Fed, rose 0.1 % in May from the prior month, in line with Wall Street’s expectations.

Meanwhile, with November’s US election high on the list of risks, investors took note of President Joe Biden’s weak showing in his first debate against presumptive Republican nominee Donald Trump. The former president’s promised tax cuts and trade clampdown are seen as likely to boost stocks. Shares in Trump Media & Technology Group (DJT) jumped in morning trading.

The market is also on alert for more signs that consumer resilience is losing steam, as key companies flag downbeat prospects for sales. Nike (NKE) stock sank more than 15% in early trading, while Walgreens (WBA) shares remained under pressure on the heels of Thursday’s 22% tumble.

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Fri, June 28, 2024 at 4:24 PM GMT+2