The stock market snapped its three-day skid after the Federal Reserve’s preferred inflation gauge met expectations.
The Dow Jones Industrial Average rose 300 points, or 0.7%. The S&P 500 gained 0.6%. The Nasdaq Composite was up 0.4%.
Wall Street piled into pretty much everything but consumer staples. The vast majority of stocks in the S&P 500 rose on the day.
The yield on the 2-year Treasury was down to 3.65%. The 10-year yield was up to 4.19%.
The headline personal consumption expenditures price index rose at a 2.7% annual rate in August. The core PCE, which is watched closely by central bank officials, rose 2.9%. Both figures matched the consensus among economists.
The three major U.S. indexes fell the prior three sessions in a row, which matched their longest combined losing streak of the year. All three finished down on the week, but Friday’s session helped them gain back some ground after hitting records on Monday.
David Donabedian, co-chief investment officer of CIBC Private Wealth, told Barron’s the market was due for a pause, so he didn’t put much stock in the three-day slide.
“Earnings are growing rather well, and monetary policy is getting more friendly,” he said. “Talking about the direction of the market: I wouldn’t bet against that combination.”