In Friday’s session, the Dow Jones Industrial Average gained 0.5%to 32,203.93 units, while the S&P 500 rose 0.6%, to 3,844.82. The Nasdaq Composite rose 0.2%, to 10,497.86 units.
A report from Department of Commerce showed that the US consumer spending barely increased in November, while inflation cooled further.
The Personal Consumption Expenditure (PCE) Price Indexthe Federal Reserve’s preferred inflation gauge, it rose 0.1% last month after 0.4% in October. In 12 months up to november, the rise was 5.5%less than the 6.1% of October.
“The good news is that the PCE has gone down to 5.5%. But, again, still above what the Federal Reserve expects and it’s part of the reason we’ve seen a rate hike, indicating that the Fed hasn’t finished its rate hike cycle yet,” he said. paul noltea portfolio manager at Kingsview Asset Management speaking to Reuters.
“Equity markets are wrong to think that the Fed is going to stop and eventually cut interest rates at the end of 2023. Right now I don’t see that happening anytime soon,” he added.
On the other hand, a baseline survey showed that US consumers expect price pressures to ease markedly next yearand the one-year inflation outlook fell in December to the lowest level in 18 months.
In the previous session, Wall Street indices had fallen sharplyafter data showed the resilience of the US economy, stoking fears that the central bank will continue to raise rates for longer.
benchmark S&P 500, down close to 20% this year, is on its way to register its biggest annual drop since the financial crisis of 2008. The nasdaqof great technological weight, it has plummeted more than 33% this year and the Dow Jones 9%.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
