U.S. Stocks Move Mostly Higher Following Inflation Data

(RTTNews) - After turning in a lackluster performance early in the session, stocks moved mostly higher over the course of the trading day on Friday. The major averages all moved to the upside, with the tech-heavy Nasdaq rejoining the Dow and the S&P 500 in positive territory after spending some time below the unchanged line.

The major averages all finished the day firmly in positive territory. The Dow advanced 299.97 points or 0.7 percent to 46,247.29, the S&P 500 climbed 38.98 points or 0.6 percent to 6,643.70 and the Nasdaq rose 99.37 points or 0.4 percent to 22,484.07.

Despite regaining ground after closing lower for three straight days, the major averages still posted losses for the week. The Nasdaq slid by 0.7 percent, while the S&P 500 and the Dow dipped by 0.3 percent and 0.2 percent, respectively.

The strength on Wall Street partly reflected a positive reaction to a closely watched Commerce Department report showing consumer prices increased in line with economist estimates in the month of August.

The Commerce Department said its personal consumption expenditures (PCE) price index climbed by 0.3 percent in August after rising by 0.2 percent in July. The price growth matched expectations.

The annual rate of growth by the PCE price index ticked up to 2.7 percent in August from 2.6 percent in July, which was also in line with estimates.

Excluding food and energy prices, the core PCE price index rose by 0.2 percent in August, matching a revised increase in July as well as expectations.

The annual rate of growth by the core PCE price index came in at 2.9 percent in August, unchanged from July and in line with estimates.

The data helped increase confidence the Federal Reserve will continue lowering interest rates in the coming months.

Meanwhile, traders shrugged off the latest tariff news, with President Donald Trump announcing in a post on Truth Social that he will be imposing a 100 tariff on pharmaceuticals unless the company is building a manufacturing plant in the U.S.

Trump also announced a 25 percent tariff on heavy trucks and a 50 percent tariff on kitchen cabinets, bathroom vanities and associated products, with the new tariffs set to take effect October 1st.

Sector News

Gold stocks moved sharply higher along with the price of the precious metal, driving the NYSE Arca Gold Bugs Index up by 2.5 percent to its best closing level in well over thirteen years.

An increase by the price of crude oil also contributed to considerable strength among oil service stocks, as reflected by the 1.6 percent gain posted by the Philadelphia Oil Service Index.

Interest rate-sensitive utilities and housing stocks also turned in strong performances on the day, moving notably higher along steel, brokerage and natural gas stocks.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index slumped by 0.9 percent, while China's Shanghai Composite Index slid by 0.7 percent.

Meanwhile, the major European markets moved to the upside on the day. While the French CAC 40 Index jumped by 1.0 percent, the German DAX Index advanced by 0.9 percent and the U.K.'s FTSE 100 Index climbed by 0.8 percent.

In the bond market, treasuries showed a lack of direction over the course of the session before closing modestly lower. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 1.5 basis points to a three-week closing high of 4.187 percent.

Looking Ahead

The Labor Department's monthly jobs report is likely to be in the spotlight next week, while traders are also likely to keep an eye on reports on manufacturing and service sector activity, consumer confidence and job openings.