The Dow Jones Industrial Average closed more than 800 points higher on Friday (Oct. 28) following the release of Personal Consumer Spending (PCE) data, which indicates that US inflation has surpassed its peak. And it will ease the pressure to accelerate the Federal Reserve (Fed) interest rate hike, which is meeting next week on monetary policy.
The Dow Jones Industrial Average closed at 32,861.80, up 828.52, or + 2.59%, the S&P 500, closed at 3,901.06, up 93.76, or + 2.46%, and the Nasdaq closed at 11,102.45, up 309.78, or + 2.87%.
over the past week The Dow was up 5.72%, while the S & P500 and Nasdaq were up 3.95% and 2.24% respectively.
The S&P and Nasdaq rose for the second straight week, while the Dow rose for the fourth straight week. and the largest weekly percentage increase since May.
The New York Stock Exchange Skyrockets As investors eased concerns about a serious rise in interest rates. The U.S. Department of Labor Statistics said Friday that its overall PCE index, which includes food and energy, was up 6.2% in September year-over-year. After an increase of 6.2 percent also in August. Analysts had expected 6.3% and, month over month, the main PCE index rose 0.3% in September, in line with analysts’ expectations. After the rebound of 0.3% also in August.
The basic PCE index, which excludes food and energy It is the key indicator of the Fed’s inflation, up 5.1% in September year-over-year. The PCE benchmark index rose 0.5% in September, in line with analysts’ expectations. after rising 0.6% in August
The PCE index is a measure of inflation that can detect changes in consumer behavior. and covers a wider range of prices for goods and services than the consumer price index (CPI).
The drop in the Pending Home Sales Index in September will also prompt the Fed to accelerate interest rate hikes. The National Association of Realtors (NAR) said its Pending Home Sales Index fell 10.2% in September month-to-month. hit its lowest level since June 2010 While analysts had previously predicted a decline of only 4% year-over-year. The index fell 31% in September.
Home Sale Contracts Affected by Low Home Inventories, Rising Home Prices and Rebounding Mortgage Interest Rates
Index of Pending Home Purchase Agreements This is a measure of the number of used home purchase agreements that have been signed but not yet closed. And it usually takes about 1-2 months to sign a contract until the sale is closed.
The latest FedWatch tool from the CME group shows investors weighed 84.5% that the Fed will raise interest rates by 0.75% for the fifth consecutive time during the policy meeting on November 1-2, and it weighed 51.4%. The Fed will raise interest rates by 0.50% in December.
The market was also driven by strong earnings releases for Chevron, Exxon Mobil and others. who are not in the tech group
Refinitiv data indicates it was predicted by the latest analysts. The third quarter results of the S&P 500 companies will increase 4.1%, compared to 2.5% expected on Thursday.
263 companies in the S&P 500 Index reported third-quarter results, and 73% reported better-than-expected results.
Ten of the 11 stocks in the S&P 500 index closed higher, led by technology and communications, by 4.52% and 2.98% respectively, while the luxury sector fell 0.3%.
Apple shares were up 7.6%, mitigating the impact of Amazon.com’s 6.8% decline after lower-than-expected earnings.
Intel shares rose 10.7% after lowering its spending forecast. And shares of T-Mobile US Inc were up 7.4%, given expectations of an increase in the number of subscribers.
Twitter’s shares were taken off the New York Stock Exchange after Tesla CEO Elon Musk completed a $ 44 billion deal to buy Twitter.
