Wall Street rallied on Friday, with the Dow gaining more than 200 points to close at another record high. Latest US economic data This has increased expectations that the Federal Reserve will cut interest rates modestly in September.
The Dow Jones Industrial Average hit an all-time high of 41,585.21 and closed up 0.6% at 41,563.08. It was the blue-chip index's fourth record close this week and 26th this year.
The S&P 500 hit its all-time high, closing with a 1% gain at 5,648.40, while the Nasdaq rose nearly 200 points, or 1.1%. It was the S&P 500's fourth consecutive winning month.
US consumer spending grew solidly in July, suggesting the economy remained strong, while prices rose modestly.
“Investors are getting another sign of a soft landing,” said Cameron Dawson, chief investment officer at NewAge Wealth. “This is one of those Goldilocks-like reports that really threads the needle in the center. The market is getting exactly what it wanted.”
A “just right” Goldilocks economy has steady growth, but not so much that it leads to excessive inflation.
Amazon and Tesla rose 3.7% and 7.8%, respectively.
Broadcom rose 3.8%, while Marvell Technology gained 9.2% after the chipmaker predicted better-than-expected quarterly results.
The personal consumption expenditure report released on Friday was the last major economic data released before the Fed's September meeting. Chairman Jerome Powell said last week that Support for imminent policy adjustments,
Money markets show that traders expect the Fed to cut rates by 25 basis points in September, with the likelihood of a 50 basis point cut diminishing further after Friday's data, according to CME Group's FedWatch tool.
Friday capped a tumultuous month on Wall Street, with fears of a US recession rising after the labour market showed signs of a sudden slowdown in early August. The impact of the Japanese yen carry trade added to the turmoil.
Stocks have rebounded since then, and the S&P 500 is trading near record highs.
Trading volumes remained low this week ahead of the stock market holiday on Monday for Labor Day.
Nvidia rose 1.5%, recovering from a 6.4% drop in the previous session as the artificial intelligence-chip maker failed to meet investors' sky-high expectations. Despite the encouraging results and a comprehensively in-line forecast.
Ulta Beauty shares fell 4% after it cut its annual results forecast. The company cited a drop in demand for higher-priced cosmetics and fragrances in its stores.
Intel shares jumped 9.5% after a report said it was considering options such as a merger.
Dell Technologies, another AI-related stock, advanced 4.3% after raising its annual revenue and profit forecasts.
Shares of Trump Media & Technology Group, majority-owned by former President Donald Trump, fell 1.7% to $19.50, giving it a market value of $3.9 billion.
