U.S. Stocks Close Week in Green

(MENAFN) Wall Street ended the week on a strong note Friday as inflation figures met expectations, calming fears that the Federal Reserve might postpone interest rate cuts.

The Dow Jones Industrial Average rose 0.65%, adding 299.97 points to finish at 46,247.29. The Nasdaq Composite climbed 0.44%, or 99.37 points, to close at 22,484.07, while the S&P 500 gained 0.59%, or 38.98 points, ending the session at 6,643.7.

Market volatility also eased, with the Volatility Index (VIX) — often referred to as the “fear index” — falling 8.66% to 15.29.

The rally came in spite of new tariff measures and political tensions. On Thursday, U.S. President Donald Trump announced new import tariffs set to take effect October 1. The new measures target pharmaceuticals, kitchen and bathroom cabinets, upholstered furniture, and heavy trucks. Tariff rates include 100% duties on branded or patented drug products from manufacturers without U.S. production facilities. Products such as kitchen cabinets will face 50% tariffs, while upholstered furniture and heavy trucks will see duties of 30% and 25%, respectively.

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Still, markets largely shrugged off the trade developments and turned their attention to robust consumer spending data. The U.S. Department of Commerce reported a 0.6% rise in personal consumption expenditures for August, outpacing expectations and reinforcing the view that inflation pressures remain contained. Analysts interpreted the figures as a signal that underlying inflation trends are holding steady.

On the other hand, consumer sentiment weakened. The confidence index for September fell by 3.1 points to 55.1, marking its lowest level since May.

At the same time, budget negotiations in Washington remained at a standstill with just days left before the September 30 deadline. The risk of a federal government shutdown is growing, as Trump on Thursday placed responsibility on Democrats for the impasse.

Despite rising political risks and global trade uncertainty, the week’s economic data helped reinforce market confidence that the Fed may stay on track to begin easing interest rates.

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