Stocks surged Friday with positive US inflation data boosting investor confidence in potential rate cuts
by Freschia Gonzales
Wealth Professional
Stocks soared on Friday, ending a volatile week on a high note as investors considered fresh US inflation data, according to CNBC.
The Dow Jones Industrial Average surged 654.27 points, or 1.64 percent, closing at 40,589.34. The S&P 500 increased by 1.11 percent to 5,459.10, while the Nasdaq Composite rose 1.03 percent, finishing at 17,357.88.
CFRA Research’s Sam Stovall noted that Friday’s gains resulted from oversold sentiment, a robust GDP report on Thursday, and expectations that the Federal Reserve will cut rates due to economic strength.
“Today’s benign PCE report helped talk the market off the ledge,” he said. “With this pullback, the great rotation lives on, and breadth continues to be on our side.”