Wall Street shares rallied Friday after signs of moderating inflation, ending with weekly gains for the first time in nearly two months.
The Dow Jones Industrial Average rose 1.8 percent or nearly 575 points to 33,212.96, an increase of 6.2 percent weekly.
The broad-based S&P 500 gained 2.5 percent to 4,158.24, while the tech-rich Nasdaq Composite Index jumped 3.3 percent to 12,131.13.
This is the first week gain for the Dow in eight weeks and the first for the S&P 500 and Nasdaq in seven weeks.
Friday’s gains extend to Wednesday’s rally, with batting stocks facing most of the year as the Federal Reserve begins aggressive measures to tighten monetary policy in response to inflation.
But data from the Commerce Department Friday showed that the Personal Use Costs (PCE) price index rose 0.2 percent, more than twice as fast as several months later.
The data supports the argument of stock market bulls that the US economy is backing out of the “peak inflation” period – or is in progress – indicating that there will be less severe consumer price news in the coming months.
Statistics “probably indicate that inflation is plateau,” said Quincy Crosby, chief equity strategist at LPL Financial. “That helps the market feel.”
“We knew the market was over-sold and we were overdue for a bounce,” said Crosby, who said investors were encouraged by the $ 61 billion acquisition of VMware by Broadcom.
Friday’s gains are broad-based, with all 30 members of the Dow moving forward. The big jumps were: Apple, 4.1 percent; Boeing, 3.5 per cent rise; And Disney, even 3.5 percent.