U.S. stocks climbed on Friday as investors brushed off a stronger-than-expected inflation reading, as both the Dow and S&P 500 indexes clinched their first weekly gain in the past three weeks.
The Dow Jones Industrial Average rose 64.81 points, or 0.19%, to 34,529.45.
The S&P 500 gained 3.23 points, or 0.08%, at 4,204.11.
The Nasdaq Composite added 12.46 points, or 0.09%, at 13,748.74.
For the week, the S&P rose 1.17%, the Dow gained 0.94% and the Nasdaq advance 2.06%.
For the month, the S&P climbed 0.55%, the Dow added 1.94% and the Nasdaq lost 1.53%.
Fed officials have repeatedly maintained in recent days that the central bank is not ready to adjust its monetary support, although some have suggested they are open to begin discussing scaling back its bond-buying plan.
Consumer prices, as measured by the personal consumption expenditures (PCE) price index excluding the volatile food and energy components, rose 0.7% in April, topping analysts’ 0.6% estimate and after a 0.4% increase in March. PCE is the Federal Reserve’s preferred measure of inflation.
In the 12 months through April, the core PCE price index surged 3.1%, smashing through the Fed’s 2% target, as the reopening economy unleashed pent-up demand.
Investors have been closely watching economic data and comments from Fed officials for signs of runaway inflation and the possibility the central bank may begin to pull back on its massive stimulus measures.
European markets close higher as U.S. data boosts recovery hopes
European markets closed higher on Friday, hitting record highs as global stocks take heart from strong economic data out of the U.S.
The pan-European Stoxx 600 ended up 0.57%, passing Thursday’s intraday record high. Financial services stocks added 1.3% to lead gains as almost all sectors and major bourses entered positive territory.
Global equities are heading for a seventh consecutive day of gains after first-time jobless claims in the U.S. fell to a new pandemic low of 406,000, according to Labor Department data on Thursday, delivering a positive indication of the health of the recovery in the world’s largest economy.
Asian stocks also climbed in Friday’s trade, led by a gain of more than 2% for Japan’s Nikkei 225, while U.S. stocks rose amid growing optimism over the U.S. economic recovery.
Investors are also monitoring negotiations in Washington over an infrastructure spending package aimed at further bolstering the recovery. Senate Republicans presented a $928 billion counteroffer to President Joe Biden on Thursday, well below the White House’s latest $1.7 trillion proposal.
Reference: CNBC, Reuters
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