Lucas Jackson/Reuters
U.S. stocks rose after tepid inflation data suggested the Federal Reserve has more room to cut interest rates.
The personal consumption expenditure price index rose 0.1% in August, in line with expectations.
Investors will be watching next week’s September jobs report for further economic insight.
U.S. stocks rose on Friday after sobering inflation data suggested the Federal Reserve has more room to cut interest rates.
The Federal Reserve’s preferred measure of inflation, the Personal Consumption Expenditure Price Index, rose 0.1% in August, in line with economists’ expectations.
On a year-on-year basis, the PCE index rose 2.2%, slightly below economists’ expectations of 2.3%.
Clark Bellin, chief investment officer at Bellwether Wealth, said the data shows the Fed was right to begin cutting interest rates by 50 basis points last week.
“The Fed feels as if it has won the war on inflation, and its main focus is to ensure stability in the job market,” Belin said in an email to Business Insider.
Sonu Varghese, macro strategist at Carson Group, said investors can be grateful for the productivity gains thanks to slower inflation.
“The underappreciated story of the past year and a half is that corporate investment spending has increased productivity, which has enabled significant income growth and production even as inflation eases,” Varghese said in an email. It means that.”
Looking ahead to next week, investors will be keeping an eye on the September jobs report, which will be released on Friday.
Here are the U.S. indices immediately after the 9:30 a.m. opening bell on Friday:
Here’s what else is going on:
In Commodities, Fixed Income and Cryptocurrencies:
West Texas Intermediate crude oil fell slightly by 0.04% to $67.64 per barrel. Brent crude oil, the international benchmark, fell 0.18% to $71.47 per barrel.
Gold fell 0.11% to $2,691.90 per ounce.
The yield on the 10-year US Treasury note fell 3 basis points to 3.772%.
Bitcoin rose 0.74% to $65,667.
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