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The S&P 500 rose Friday after cooler inflation data, with stocks heading for an eighth-straight winning week as Wall Street looks to extend its year-end rally.
The Dow Jones Industrial Average added 36 points, or about 0.1%, while the Nasdaq Composite was higher by 0.4%.
The S&P 500 gained 0.4%. At current levels, the broader index is 0.6% from its record close, and 1% from intraday record.
The S&P 500 advance was broad-based, with more than 440 names gaining in the benchmark. Energy outperformed, with shares of EOG Resources and ConocoPhillips each higher by 1.4%.
Dow component Nike dropped 10% after lowering its sales outlook, and announcing plans to cut costs by about $2 billion over the next three years.
The Federal Reserve’s favorite inflation gauge came in less than expected. The November core personal consumption expenditures price index rose just 0.1% last month, and gained 3.2% from a year ago, about in line with expectations. Economists polled by Dow Jones were anticipating a rise of 0.1% month over month, and 3.3% year over year.
“We believe that today’s PCE data, which the Fed weighs heavily in its review of inflation status, further cemented the downward trajectory of inflation,” said Greg Bassuk, chief executive officer at AXS Investments. “And we think that’s another catalyst for today’s excitement by investors, that a soft landing seems closer to being assured.”
The three major averages are on pace for their eighth positive week in a row — a first for the S&P 500 since 2017 and for the Dow dating back to 2019. The S&P 500 is up 0.9% for the week, while the Dow has a gain of 0.4%. The Nasdaq is up more than 1% in the period.
The market rally has recently broadened out as bond yields fall and traders bet on rate cuts from the central bank. On Friday, the small-cap Russell 2000 gained more than 1%, on pace for its sixth straight positive week.
“It underscores the breadth and depth of this holiday rally, which we think is going to bode well for investors moving into 2024,” Bassuk said.
The U.S. stock market will be closed on Monday for Christmas.
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