In an impressive comeback, the Wall Street tried to recover lost ground in a particularly difficult week with investors focused on US inflation data.
THE Dow Jones rose 654.27 points or 1.64% to close at 40,589.34 points, led by the impressive rise of 3M. The industrial giant rallied 23% for its best daily performance since at least 1972. The S&P 500 strengthened by 1.11% to 5,459.10 units, while Nasdaq ended at 17,357.88 points with an increase of 1.03%.
Friday’s move was driven by Thursday’s better US GDP data and today’s inflation data, which strengthened views that the Federal Reserve will start cutting interest rates.
Investors continued to shift to cyclical and small-cap stocks with the Russell 2000 index rising 1.67%. Stocks in the industrial and raw materials sector rose, up 1.7%.
Some of the major tech names that fell in importance in this week’s sale, such as Microsoft and Amazon, rallied more than 1% each. Meta Platforms rose about 3% with the IT sector rising about 1%.
Data on the personal consumer spending index, which showed a slight increase in June than in May and was in line with analysts’ forecasts, raised investors’ expectations for further rate cuts this year. in September, November and December.
For the week, the S&P 500 fell 0.8%, while the Nasdaq lost 2.1% of its value. Both indexes posted consecutive weekly losses for the first time since April. The Dow, however, outperformed, rising 0.8%, marking its fourth consecutive positive week, the first since May.