US: Wall Street indexes end up as investors weigh inflation data
Market participants have been concerned about economic data this week, weighing signs of a stronger economy against expectations for more interest rate cuts from the Federal Reserve
[NEW YORK] US stocks ended higher on Friday (Sep 26) after mostly in-line US inflation data, but indexes posted losses for the week.
The Personal Consumption Expenditures (PCE) Price Index increased 0.3 per cent in August, matching estimates of economists polled by Reuters. In the 12 months to August, PCE inflation increased 2.7 per cent after climbing 2.6 per cent in July. Solid US consumer spending in August underscored the economy’s resilience.
Market participants have been concerned about economic data this week, weighing signs of a stronger economy against expectations for more interest rate cuts from the Federal Reserve. The Fed last week cut rates for the first time since December.
Investors are questioning what the Fed’s path is going to be from here, and are preparing for quarter-end, said Bruce Zaro, managing director at Granite Wealth Management in Plymouth, Massachusetts.
“To me, it’s typical of quarter-end window dressing… You are going to have some volatility during this period and in the subsequent weeks because you have earnings coming,” he said.
Also, shares of truck maker Paccar, which makes most of its trucks for the US market domestically, rose, a day after President Donald Trump unveiled fresh import tariffs, including on heavy-duty trucks, branded pharmaceutical products, kitchen cabinets and bathroom vanities, along with upholstered furniture. Drugmaker Eli Lilly also gained.
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Electronic Arts shares jumped after reports that the company was in advanced talks to go private.
According to preliminary data, the S&P 500 gained 38.98 points, or 0.59 per cent, to end at 6,643.70 points, while the Nasdaq Composite gained 99.37 points, or 0.44 per cent, to 22,484.07. The Dow Jones Industrial Average rose 299.97 points, or 0.65 per cent, to 46,247.29.
Richmond Fed Bank president Thomas Barkin, in an interview with Bloomberg Television, said that he had very low confidence in inflation forecasts, as tariffs continue to impact the economy.
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Investors are also bracing for a potential government shutdown, which could disrupt data releases and add uncertainty to the markets.
Costco Wholesale fell after the company reported quarterly results. REUTERS
