FX.co ★ US Equities Break 3-Day Losing Streak

On Friday, U.S. stocks ended with gains, driven by a positive investor reaction to an inflation report that aligned with expectations, amidst new tariffs from President Trump and declining consumer sentiment. The S&P 500 advanced by 0.6%, the Nasdaq 100 increased by 0.4%, and the Dow Jones climbed 300 points, all breaking a three-day losing streak. The Personal Consumption Expenditures (PCE) index for August, a key inflation measure favored by the Federal Reserve, indicated a core inflation rate of 2.9% year-over-year. This data reinforced the outlook for two upcoming quarter-point interest rate cuts. Contributing to the rise were companies like Boeing, which gained 3.6%, alongside significant support from major banks. Additionally, corporate developments such as GlobalFoundries' 8.4% surge following announcements of proposed U.S. chip production regulations further bolstered the indices. Meanwhile, the introduction of new tariffs by President Trump on items including pharmaceuticals, heavy trucks, and furniture injected a degree of uncertainty, compounded by apprehensions about a potential government shutdown. Over the week, the S&P 500 saw a decline of 0.3%, the Nasdaq dropped by 0.7%, and the Dow Jones remained unchanged.