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U.S. Stocks End Friday on High Note
(MENAFN) US stocks closed higher on Friday, driven by inflation data for September that came in slightly below expectations, boosting investor optimism.
The Dow Jones Industrial Average soared 472.51 points, or 1.01%, finishing at a historic 47,207.12, marking its first-ever close above the 47,000 threshold. The S&P 500 gained 53.25 points, or 0.79%, ending at 6,791.69, while the Nasdaq Composite Index rose 263.07 points, or 1.15%, to close at 23,204.87. All three major indexes finished at record highs.
Among the 11 primary sectors of the S&P 500, six saw gains, with technology and communication services leading the charge, up 1.58% and 1.27%, respectively. In contrast, energy and materials sectors lagged behind, declining 1.01% and 0.61%, respectively.
The September consumer price index (CPI) report, which was delayed due to the U.S. federal government shutdown, showed a monthly increase of 0.3%, pushing the annual inflation rate to 3%. This came in slightly below economists' forecasts of 0.4% for the month and 3.1% year-over-year, as per a survey by Dow Jones. Core CPI, which excludes food and energy, rose 0.2% in September, bringing the 12-month change to 3%, also under expectations.
The CPI report fueled growing speculation among traders that the Federal Reserve will implement interest rate cuts in both of its remaining meetings this year. The odds of a December rate cut surged to 98.5% from around 91% before the data release, based on the CME FedWatch tool. The probability of a rate cut next week remained above 95%.
"There was little in today's benign CPI report to 'spook' the Fed and we continue to expect further easing at next week's Fed meeting," said Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management. "A December rate cut also remains likely with the current data drought providing the Fed with little reason to deviate from the path set out in the dot plot."
On the corporate front, Intel saw its shares rise 0.31% after the chipmaker reported third-quarter revenue that exceeded Wall Street estimates. "We believe we are well-positioned to play a more significant role in AI," said John Pitzer, Intel's head of investor relations.
The Dow Jones Industrial Average soared 472.51 points, or 1.01%, finishing at a historic 47,207.12, marking its first-ever close above the 47,000 threshold. The S&P 500 gained 53.25 points, or 0.79%, ending at 6,791.69, while the Nasdaq Composite Index rose 263.07 points, or 1.15%, to close at 23,204.87. All three major indexes finished at record highs.
Among the 11 primary sectors of the S&P 500, six saw gains, with technology and communication services leading the charge, up 1.58% and 1.27%, respectively. In contrast, energy and materials sectors lagged behind, declining 1.01% and 0.61%, respectively.
The September consumer price index (CPI) report, which was delayed due to the U.S. federal government shutdown, showed a monthly increase of 0.3%, pushing the annual inflation rate to 3%. This came in slightly below economists' forecasts of 0.4% for the month and 3.1% year-over-year, as per a survey by Dow Jones. Core CPI, which excludes food and energy, rose 0.2% in September, bringing the 12-month change to 3%, also under expectations.
The CPI report fueled growing speculation among traders that the Federal Reserve will implement interest rate cuts in both of its remaining meetings this year. The odds of a December rate cut surged to 98.5% from around 91% before the data release, based on the CME FedWatch tool. The probability of a rate cut next week remained above 95%.
"There was little in today's benign CPI report to 'spook' the Fed and we continue to expect further easing at next week's Fed meeting," said Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management. "A December rate cut also remains likely with the current data drought providing the Fed with little reason to deviate from the path set out in the dot plot."
On the corporate front, Intel saw its shares rise 0.31% after the chipmaker reported third-quarter revenue that exceeded Wall Street estimates. "We believe we are well-positioned to play a more significant role in AI," said John Pitzer, Intel's head of investor relations.
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