On Friday, the Dow Jones Industrial Average rose more than 800 points, buoyed by inflation data that helped the market recover from a selloff earlier this week. The Personal Consumption Expenditures (PCE) Price Index, which is used by the US Federal Reserve as an indicator to measure inflation, rose slightly by 0.1% in November from the previous month.
On an annual basis, the PCE price index reflects an inflation rate of 2.4%, slightly above the Fed’s long-term target of 2% but significantly below the analyst consensus estimate of 2.5%. Cooling inflation data is expected to ease concerns about persistent price pressures, raising expectations that the Fed could cut rates more than once in 2025.
In the afternoon, the Dow Jones Industrial Average rose more than 796 points, or 1.8%. The tech-heavy Nasdaq and S&P 500 each rose 1.8%.
AI stocks rebounded Friday morning and emerged as top performers. Nvidia (NVDA), which fell sharply earlier this week, rose 2.3% to trade at $133 per share. Shares of Super Microcomputer (SMCI) and Broadcom (AVGO) rose 4.3% and 3.7%, respectively.
Bitcoin dipped below $92,000 early Friday, but rebounded somewhat following the Federal Reserve’s announcement that it will slow the pace of interest rate cuts heading into 2025. The major cryptocurrency was hovering around $96,000 Friday morning, down about 7.7% over the past day. Bitcoin has fallen more than 10% since hitting a high of more than $106,000 earlier in the week.
– Rocío Fabbro contributed to this article
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