US stocks jump as investors cheer better-than-expected inflation data

trader happy smile
Getty Images / Mario Tama
  • US stocks jumped Friday as investors took in better-than-expected inflation.

  • Core PCE, the Fed's preferred inflation measure, rose 0.1% in August, below estimates of 0.2%.

  • Eurozone prices growth also slowed, with European inflation rising at its slowest pace in two years.

US stocks edged higher on Friday as markets digested cooler-than-expected inflation data. All three benchmark indexes rose higher at the open, with the Dow Jones Industrial Average gaining nearly points.

The core personal consumption expenditures price index, which is the Fed's preferred inflation measure, jumped 0.1% over the month of August and 3.9% year-per-year, the Bureau of Economic Analysis reported. That's slightly better than an expected monthly increase of 0.2%.

"Friday's PCE on a core basis, which removes food and energy prices, suggests that inflation is continuing to decelerate, meaning the Fed's aggressive campaign is working," BMO Family Office chief investment officer Carol Schleif said in a note Friday morning. "The challenge is that core PCE remains almost double the Fed's 2% target, prompting the Fed to keep the possibility of another rate hike in play."

European inflation is also slowing, with prices in the eurozone rising at their lowest pace in two years last month, the European Central Bank said. Inflation climbed 4.3% during the month of August.

US stocks are closing out a tough month, with the S&P 500 on track to end September over 4% lower. The Nasdaq Composite is set end the month 6% lower, while the Dow is set to slide 3%. That marks the second-straight losing month for stocks, and the worst month for the market in 2023

Here's where US indexes stood as the market opened 9:30 a.m. on Friday: 

Here's what else is going on: 

In commodities, bonds, and crypto: 

Read the original article on Business Insider