U.S. stock markets ended higher on Friday, following largely in-line inflation figures, although indices recorded losses over the week.
PCE Inflation Sends Positive Signal
Brad Bernstein, Managing Director at UBS Private Wealth Management, said markets reacted positively to the Personal Consumption Expenditures (PCE) data released earlier in the day. The PCE is the Federal Reserve’s preferred measure of inflation.
Bernstein added that the main short-term risk for markets would arise if investors start to believe the Fed cannot cut rates due to improving economic data and rising inflation. “As long as inflation remains steady and employment data is mixed, rate cuts can continue, which bodes well for markets into the new year,” he noted.
Market Performance
S&P 500 rose 38.98 points (+0.59%) to 6,643.70.
Nasdaq Composite gained 99.37 points (+0.44%) to 22,482.07.
Dow Jones Industrial Average added 299.97 points (+0.65%) to 46,247.29.
Economic Context
The PCE Price Index increased by 0.3% in August, in line with economists’ expectations. Annual inflation rose to 2.7% from 2.6% in July. Strong consumer spending in August highlighted the resilience of the U.S. economy.
Trade and Tariffs
Meanwhile, shares of U.S. truck manufacturer Paccar rose, a day after President Donald Trump announced new import tariffs covering heavy-duty trucks, branded and patented pharmaceuticals, kitchen and bathroom cabinets, and upholstered furniture.
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The United States and Iran have significantly escalated their conflict, exchanging heavy missile and drone strikes across the Gulf region. Iran claims it has once again closed the Strait of Hormuz, a vital global shipping route.
Twelve people have been arrested in connection with an alleged extreme right-wing terrorism plot targeting a major Islamic gathering in Suffolk, prompting counter-terrorism police to declare a major incident and bring the event to an early close.
Ukraine and a group of key Western allies have launched a new air defence coalition to develop a European anti-ballistic missile system that will complement existing defences and reduce reliance on the costly U.S.-made Patriot system.
Two endangered loggerhead sea turtles have been released into the Mediterranean from Türkiye's Antalya province as part of a conservation project to track their migration and strengthen protection efforts.
The 4th Shusha Global Media Forum will bring together nearly 160 media leaders, experts and officials from 54 countries in Azerbaijan's historic city of Shusha on 13-14 July, to discuss journalism’s role in peacebuilding, restoring public trust and tackling challenges.
The U.S. has launched fresh strikes on Iran after Tehran targeted a container ship and said it had again closed the Strait of Hormuz. Iran also claimed to have expanded attacks on U.S. military facilities across the Gulf.
Typhoon Bavi, the strongest storm to hit the eastern coast of mainland China this year, brought heavy rain, strong winds, flooding and landslides after making landfall in Zhejiang province on Sunday. More than 2.8 million people were evacuated to safety ahead of the storm.
President Ilham Aliyev is holding his annual question-and-answer session with international journalists at the 4th Shusha Global Media Forum in Azerbaijan.
Qatar is mourning the death of its former ruler, Sheikh Hamad bin Khalifa Al Thani, who has passed away at the age of 74.
China has approved fast-fashion retailer Shein's long-awaited initial public offering (IPO) in Hong Kong, clearing the way for the company to pursue a stock market listing after previous attempts in the U.S. and London failed.
European carmakers have urged the European Union to make sure new “Made in EU” rules do not put existing investments in Türkiye and Morocco at risk.
Microsoft is expected to announce a new round of job cuts as early as next week as the technology giant looks to reduce costs, according to reports.
A Swedish court has ordered Alphabet-owned Google to pay about $1.5 billion in antitrust damages to price comparison platform PriceRunner, in one of Europe's largest competition-related awards against a major technology company.
U.S. President Donald Trump earned more than $1bn from cryptocurrency-related business ventures last year, according to his mandatory 2025 financial disclosure.
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