The Dow Jones Industrial Average closed up more than 800 points on Friday (October 28) following the release of personal consumption expenditure (PCE) data, which shows US inflation has passed its peak. And it will reduce pressure to accelerate interest rate increases by the Federal Reserve (Fed), which will meet next week on monetary policy.
The Dow Jones Industrial Average closed at 32,861.80, up 828.52, or +2.59%, the S&P 500 closed at 3,901.06, up 93.76, or +2.46%, and the Nasdaq closed at 11,102.45, up 3,901.06.
in the last week the Dow was up 5.72%, while the S&P500 and Nasdaq were up 3.95% and 2.24%, respectively.
The S&P and Nasdaq were up for the second consecutive week, while the Dow rose for the fourth consecutive week. and the biggest weekly percentage increase since May.
New York Stock Exchange Soars As investors ease worries about a serious interest rate hike. The US Department of Labor Statistics said on Friday that its overall PCE index, which includes food and energy, rose 6.2 percent in September year over year. After also rising 6.2 percent in August. Analysts had forecast 6.3 percent, and month-on-month, the headline PCE index rose 0.3% in September, in line with analysts’ expectations. After rebounding 0.3% also in August.
The core PCE index, which excludes food and energy This is the Fed’s key inflation gauge, up 5.1 percent in September year on year. The benchmark PCE index rose 0.5% in September, in line with analysts’ expectations. after rising 0.6% in August
The PCE index is a measure of inflation that can detect changes in consumer behaviour. and covers a wider range of prices for goods and services than the Consumer Price Index (CPI).
The fall in the planned home sales index in September will also encourage the Fed to accelerate interest rate hikes. The National Association of Realtors (NAR) said its index of pending home sales fell 10.2 percent in September month-over-month. reaching the lowest level since June 2010 Although analysts had predicted a drop of just 4% year on year. The index sank 31% in September.
Home sales contracts affected by low housing stocks, soaring house prices and rebound in mortgage interest rates
Index of pending home sales contracts It is a measure of the number of used home purchase contracts that have been signed but not yet closed. And it usually takes about 1-2 months for a contract to be signed until the sale is closed.
The CME Group’s latest FedWatch Tool shows that investors 84.5% expect the Fed to raise interest rates by 0.75% for the fifth time in a row at its November 1-2 policy meeting, and 51.4% expect the Fed to raising interest rates by 0.50% in December.
The market was also driven by strong earnings releases for Chevron, Exxon Mobil and others. who are not in the technology group
Data from refinitiv shows that The latest analysts predicted that the third quarter results of S&P 500 companies will grow 4.1%, up from the 2.5 percent expected on Thursday.
263 companies in the S&P 500 index reported third quarter results, and 73% reported better than expected results.
Ten of the 11 stocks in the S&P 500 index closed higher, led by technology and communications, up 4.52% and 2.98%, respectively, while the luxury sector fell 0.3%.
Apple shares jumped 7.6 percent, cushioning the impact of Amazon.com’s 6.8 percent fall after lower-than-expected earnings.
Intel shares are up 10.7% after lowering spending forecasts. And T-Mobile US Inc shares jumped 7.4 percent, given expectations of an increase in the number of subscribers.
Twitter shares were delisted from the New York Stock Exchange after Tesla CEO Elon Musk completed a $44 billion deal to buy Twitter.
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