A
trader
works
on
the
floor
of
the
New
York
Stock
Exchange.
Brendan
Mcdermid
|
Reuters
Stocks
jumped
Friday,
and
Wall
Street
capped
off
a
turbulent
week
on
a
positive
note
as
investors
weighed
fresh
U.S.
inflation
data.
The
Dow
Jones
Industrial
Average
rallied
654.27
points,
or
1.64%,
to
finish
at
40,589.34.
The
S&P
500
climbed
1.11%
to
end
at
5,459.10,
while
the
Nasdaq
Composite
gained
1.03%
to
close
at
17,357.88.
Friday’s
moves
stem
from
a
combination
of
oversold
sentiment,
a
stronger-than-expected
GDP
report
Thursday
and
the
view
that
the
Federal
Reserve
will
begin
cutting
rates
due
to
economic
resilience,
said
CFRA
Research’s
Sam
Stovall.
“Today’s
benign
PCE
report
helped
talk
the
market
off
the
ledge,”
he
added.
“With
this
pullback,
the
great
rotation
lives
on
and
breadth
continues
to
be
on
our
side.”
Investors
continued
their
pivot
into
cyclical
areas
of
the
market
and
small
caps,
with
the
Russell
2000
rising
1.67%.
Industrials
and
materials
stocks
rose,
lifting
their
respective
S&P
sectors
about
1.7%.
3M
skyrocketed
23%,
leading
the
industrials
sector
to
the
upside.
The
stock
notched
its
best
day
since
at
least
1972.
Some
technology
names
that
have
struggled
amid
this
week’s
sell-off
gained,
with
Microsoft
and
Amazon
adding
more
than
1%
each.
Meta
Platforms
climbed
nearly
3%.
The
S&P’s
information
technology
sector
surged
about
1%.
Wall
Street
also
assessed
June’s
personal
consumption
expenditures
price
index,
an
inflation
reading
that
is
preferred
by
central
bank
policymakers.
On
a
monthly
basis,
headline
PCE
rose
0.1%
and
2.5%
from
a
year
ago.
That
was
in
line
with
estimates
from
economists
polled
by
Dow
Jones.
This
positive
inflation
news
has
also
lifted
investor
hopes
for
more
rate
cuts
this
year,
with
the
fed
funds
futures
market
pricing
in
cuts
in
September,
November
and
December.
“The
numbers
have
been
coming
in
tamer,”
said
Ken
Mahoney,
president
of
Mahoney
Asset
Management.
“In
housing
and
real
estate,
you’re
starting
to
see
some
cracks.
They’re
going
to
stop
messing
around,
start
cutting
rates.”
That
data
comes
at
the
end
of
a
volatile
week
on
Wall
Street.
The
S&P
500
declined
0.8%,
while
the
Nasdaq
lost
2.1%.
Both
indexes
posted
back-to-back
weekly
losses
for
the
first
time
since
April.
The
Dow
outperformed,
adding
0.8%,
and
notching
its
fourth
consecutive
positive
week
for
the
first
time
since
May.
The
action
came
as
investors
seemed
to
participate
in
a
rotation
into
small
caps
and
cyclicals.
SPX
5-day
chart
In
other
news,
medical
device
maker
Dexcom
plunged
41%
after
releasing
disappointing
fiscal
full-year
guidance.
Footwear
company
Deckers
reported
fiscal
first-quarter
earnings
and
revenue
that
exceeded
analysts’
expectations,
boosting
shares
6%.
