- US stocks climbed Friday and marked the end of a long run of losing weeks.
- S&P 500 and the Nasdaq Composite secured their first weekly advances after seven weeks of losses.
- The core reading on the Fed's preferred inflation gauge eased to 4.9% in April from 5.2% in March.
Investors in US stocks on Friday put an end to the market's longest weekly losing streak in more than 20 years amid fresh signs that inflation is finally easing.
The S&P 500 and the Nasdaq Composite, which has been in a bear market, secured their first weekly advances after seven weeks of losses. The S&P 500's run lower was the longest such streak since 2001. The Dow Jones Industrial Average notched its first weekly win after eight weeks of declines. Stock trading in the US will be closed on Monday in observance of Memorial Day.
Stocks rose after the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures Index, rose 4.9% in April, down from the 5.2% gain in March. The moderation joined April's headline consumer price index, which dipped to 8.3% from March's 41-year high of 8.5%.
Here's where US indexes stood at 4:00 p.m. on Friday:
- S&P 500: 4,158.24, up 2.47%
- Dow Jones Industrial Average: 33,212.96, up 1.76% (575.77 points)
- Nasdaq Composite: 12,131.13, up 3.33%
The slowdown in inflation readings added to hopes that the Fed would not be forced to raise interest rates more aggressively this year.
"Investors have been more comfortable about buying into this rally thanks to the lack of any hints of 75 bps rate hikes in this week's minutes," said Chris Beauchamp, chief market analyst at IG, in a note. "Worries about inflation have been the big driver of declines of late, so the slowdown in the PCE price index on both the headline and core measures helped to shore up sentiment as well."
Inflows into global equity funds hit a 10-week high this week, Bank of America said Friday. Gains in US stocks this week were fueled in part by minutes from the Federal Open Market Committee's March meeting. Policy makers agreed they should "expeditiously move" toward raising interest rates and then potentially take time to assess the impact of swift rate hikes on the economy.
The White House said Russia is poised to default on its bonds as its $100 million payment comes due. Meanwhile, any further drop in Russian oil supply is likely to lead to a global recession and push prices past $150 a barrel, warned Bank of America.
Bitcoin flipped down, losing 3.8% to $28,321.11