On Friday, the S&P 500 gained 0.5%, the Nasdaq rose by 0.3%, and the Dow Jones climbed over 260 points, as investors responded positively to the latest Personal Consumption Expenditures (PCE) report indicating stable inflationary pressures. The data aligned with expectations, showing core inflation remaining steady while the headline PCE inflation experienced a slight increase. These results bolstered predictions for potential further rate cuts by the Federal Reserve later this year, with markets anticipating another rate reduction in the upcoming months.
In trade-related developments, President Trump announced the imposition of a 100% tariff on branded or patented pharmaceutical products starting October 1st, unless manufacturers relocate their production facilities to the United States. Additional tariffs include a 25% duty on heavy trucks. Except for consumer staples, all sectors recorded gains.
Boeing's stock advanced by 2.8% following news that the Federal Aviation Administration (FAA) is set to relax delivery restrictions on aircraft. Shares of Intel rose by 3.7%, Tesla by 2.5%, and Eli Lilly by 1.2%. Conversely, Costco's shares dropped nearly 3.5% after the company reported disappointing results.
