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US stocks surged Friday, with the Dow Jones hitting a record high on new inflation data.
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The personal consumption expenditures Index rose 2.5% year-over-year, matching estimates.
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Strong earnings from Dell Technologies and Marvell, driven by AI, boosted investor confidence.
US stocks moved higher on Friday, with the Dow Jones Industrial Average testing record highs as investors digested new inflation data.
The Personal Consumption Expenditures Index, considered to be the Federal Reserve’s preferred inflation gauge, was in-line with the prior reading for the month of July.
The PCE Index rose 2.5% year over year, which was in line with economist estimates, and it rose 0.2% month over month, also in line with estimates.
Fitch Ratings economist Olu Sonola said the PCE data was a “double dose of good news” for investors.
“Inflation prints are slowly but surely becoming boring again as this report continues the recent streak of benign core and headline inflation prints. Consumer spending continues to surprisingly exceed all expectations, a clear indication that the economy continues to be in good shape with solid above-trend growth,” Sonola said.
Aside from the inflation data, investors are parsing over solid earnings reports that were released after the market close on Thursday, mainly from Dell Technologies and Marvell Technology.
Both tech-focused companies beat second-quarter profit and revenue estimates, with their respective AI-focused businesses driving the beats.
Shares of Marvell soared 12% in Friday morning trades, while Dell Technologies stock was up 5%.
Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Friday:
Here’s what else is going on:
In commodities, bonds, and crypto:
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West Texas Intermediate crude oil decreased 2.42% to $74.07 a barrel. Brent crude, the international benchmark, dropped 2.11% to $77.16 a barrel.
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Gold was lower by 0.46% to $2,548.40 an ounce.
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The 10-year Treasury yield was flat at 3.872%.
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Bitcoin rose 0.39% to $59,600.
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