NEW YORK, Sept. 26 (Xinhua) — U.S. stocks ended higher on Friday, snapping a three-day losing streak, as an inflation reading met market expectations and eased investor concerns.
The Dow Jones Industrial Average rose 299.97 points, or 0.65 percent, to 46,247.29. The S&P 500 gained 38.98 points, or 0.59 percent, to 6,643.7. The Nasdaq Composite Index added 99.37 points, or 0.44 percent, to 22,484.07.
Ten of the 11 primary S&P 500 sectors advanced, with utilities and consumer discretionary leading the gainers by rising 1.59 percent and 1.45 percent, respectively. The consumer staples sector was the sole decliner, edging down 0.11 percent.
Data from the U.S. Bureau of Economic Analysis showed the Federal Reserve’s preferred inflation gauge, the personal consumption expenditures price index, rose 2.7 percent annually in August, with core inflation running at a 2.9 percent annual rate.
Both figures were in line with expectations. Markets continue to price in two quarter-point rate cuts at upcoming Fed meetings, consistent with the central bank’s latest projections.
Separately, the U.S. consumer sentiment index fell to 55.1 in September, according to the University of Michigan (UM) Surveys of Consumers, the seventh-lowest reading since records began in 1952.
“Consumers continue to express frustration over the persistence of high prices, with 44 percent spontaneously mentioning that high prices are eroding their personal finances, the highest reading in a year,” said Joanne Hsu, director of the UM’s Surveys of Consumers, in a release.
“Interviews this month highlight the fact that consumers feel pressure both from the prospect of higher inflation as well as the risk of weaker labor markets,” she added.
Meanwhile, in corporate moves, Intel gained another 4.44 percent, extending its rally of more than 20 percent this week following reports that Apple had discussed taking a stake in the chipmaker. By contrast, Oracle dropped 2.7 percent, deepening its recent slide.
“Recent U.S. activity data have beaten expectations, and we may see business surveys improve to reflect this situation. Nonetheless, risks remain, most notably from a weakening housing market and a cooling jobs market,” said James Knightley, chief international economist at ING.
“House prices have fallen for four consecutive months as the supply of homes for sale starts to increase while demand remains constrained by a lack of affordability,” he said. “We expect to see a fifth straight monthly drop in house prices next week, which will do nothing to support already fragile consumer confidence.”
