US stocks opened higher on Friday after the Federal Reserve’s preferred inflation gauge –Personal Consumption Expenditures (PCE) price index – was found to be in line with expectations.
This served to allay fears that sustained price pressures could postpone interest rate reductions from the Federal Reserve.
As of 9:35 AM Eastern Time, the S&P 500 rose 0.5%, the Dow Jones Industrial Average was up 0.5%, and the Nasdaq Composite was 0.4% higher.
At the open, the Dow Jones Industrial Average rose 154.1 points, or 0.34%, to 46,101.45. The S&P 500 rose 10.7 points, or 0.16%, to 6,615.38, while the Nasdaq Composite rose 18.6 points, or 0.08%, to 22,403.273.
The Commerce Department data showed on Friday that the Personal Consumption Expenditures price index had increased by 2.7% in August compared to the previous year. This marked a slight rise from the 2.6% in July and was the largest climb since February.
Meanwhile, the core PCE inflation, which excludes volatile food and energy prices, demonstrated a 2.9% rise in prices from August 2024, remaining consistent with the figure from July.
In the bond market, the yield on the 10-year Treasury held steady at 4.18%, where it was late on Thursday.
Gainers and Losers
Stocks of Eli Lilly rose 1.2%, and Pfizer added 0.5%.
Companies that sell kitchen cabinets and other home furnishings declined with Williams-Sonoma falling 1.5% and RH slipping 1.5%.
Costco Wholesale shares dropped 3.5% despite the company reported a stronger quarterly profit.
Bullion
Gold prices gained on Friday after US inflation data came in line with expectations.
As of 9:20 AM EDT (1320 GMT), spot gold rose 0.3% to $3,761.41 per ounce. US gold futures for December delivery rose 0.6% to $3,792.
Among other metals, spot silver rose 0.5% to $45.46 per ounce, palladium gained 1.3% to $1,266.50, and platinum rose 1.2% to $1,547.42.
Crude oil
Oil is poised for its biggest weekly gain in over three months as US President Donald Trump has increased pressure on buyers of Russian energy in an effort to end the war in Ukraine.
On Friday, Brent crude rose above $69 a barrel, marking an increase of more than 4% for the week.
