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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A large fire at the import cargo complex of Dhaka airport has caused significant damage to goods and materials belonging to key garment exporters, with losses and impacts on trade potentially amounting to millions of dollars, according to industry leaders on Sunday.
The Orenburg gas processing plant, the world's largest facility of its kind, has been forced to halt its intake of gas from Kazakhstan following a Ukrainian drone strike, according to Kazakhstan's energy ministry.
Israel launched air strikes and artillery fire on Gaza on Sunday, in what officials called a response to militant attacks, as the U.S.-mediated ceasefire came under renewed strain.
This September, I had a chance to visit Yerevan for the 108th edition of the Rose-Roth seminar, traditionally held by the NATO Parliamentary Assembly since 1990 and intended for post-socialist countries.
At least 69 people have died and almost 150 injured following a powerful 6.9-magnitude earthquake off the coast of Cebu City in the central Visayas region of the Philippines, officials said, making it one of the country’s deadliest disasters this year.
A tsunami threat was issued in Chile after a magnitude 7.8 earthquake struck the Drake Passage on Friday. The epicenter was located 135 miles south of Puerto Williams on the north coast of Navarino Island.
The war in Ukraine has reached a strategic impasse, and it seems that the conflict will not be solved by military means. This creates a path toward one of two alternatives: either a “frozen” phase that can last indefinitely or a quest for a durable political regulation.
A shooting in Nice, southeastern France, left two people dead and five injured on Friday, authorities said.
Snapchat will start charging users who store more than 5GB of photos and videos in its Memories feature, prompting backlash from long-time users.
In the first nine months of this year, 10.2 billion cubic metres of gas were produced from the Azeri-Chirag-Gunashli (ACG) block in the Azerbaijani sector of the Caspian Sea, according to operational data released by the Ministry of Energy.
Apple’s latest smartphone, the iPhone Air, sold out within minutes of its launch in China on Friday, highlighting the brand’s enduring appeal among Chinese consumers despite growing competition from local Android makers.
Wall Street closed lower on Thursday as renewed concerns about regional banks and intensifying U.S.-China trade tensions weighed on investor sentiment, pulling major indexes off recent record highs.
Giorgio Armani's deputy managing director, Giuseppe Marsocci, is set to be appointed chief executive of the Italian fashion house, a source said on Thursday, confirming a local media report.
Tesla has told the Delaware Supreme Court that Elon Musk’s $56 billion pay package should have been restored last year through a shareholder vote, as the company appeals a lower court ruling that rescinded the CEO’s record compensation.
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