Wall Street stocks rallied Friday following signs of moderating inflation, finishing with weekly gains for the first time in about two months.
The Dow Jones Industrial Average rose 1.8 percent, or 575 points, to 33,212.96, a 6.2 percent weekly gain.
The S&P 500 rose 2.5 percent to 4,158.24, while the tech-heavy Nasdaq Composite Index rose 3.3 percent to 12,131.13.
It was the Dow’s first weekly gain in eight weeks, and the S&P 500 and Nasdaq’s first weekly gains in seven weeks.
Friday’s gains build on a rebound that began on Wednesday, reversing the losses that equities have suffered for the majority of the year as the Federal Reserve tightens monetary policy in reaction to inflation.
However, according to statistics released by the Commerce Department on Friday, the personal consumption expenditures (PCE) price index increased 0.2 percent after growing at more than twice the rate for previous months.
Wall Street stocks end with weekly gains
The data supports stock market bulls’ argument that the US economy is moving through — or has moved from — a phase of “peak inflation,” implying that consumer pricing news will be less bleak in the months ahead.
According to Quincy Krosby, chief equity strategist at LPL Financial, the statistics “indicate that inflation is plateauing.” “This is good for market sentiment.
“”The market was oversold, and we thought we were due for a recovery,” Krosby said, adding that investors were buoyed by Broadcom’s $61 billion acquisition of VMware.
The Dow’s 30 members all rose on Friday, indicating that the rally was broad-based. Apple was up 4.1 percent, Boeing was up 3.5 percent, and Disney was up 3.5 percent as well.
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