05.12.202515:19:53UTC+00US Stocks Extend Gains After PCE

On Friday, US stocks saw continued growth with the S&P 500 increasing by 0.5%, the Nasdaq climbing 0.6%, and the Dow Jones gaining approximately 220 points. This uptick followed the release of PCE inflation data aligning closely with expectations, strengthening predictions of another Federal Reserve interest rate cut in the upcoming week. Current market sentiment indicates an 87% probability of a 25 basis point reduction. Additionally, consumer sentiment in Michigan showed improvement for the first time in five months, alongside a decrease in inflation expectations. Communication services and technology sectors led the market in performance. The majority of large-cap companies experienced gains: Microsoft rose by 0.4%, Amazon by 0.7%, Alphabet by 1.3%, Meta by 0.7%, Broadcom by 2.7%, and Tesla by 0.4%. Conversely, Apple remained relatively unchanged and Nvidia saw a slight decline of 0.2%. Netflix shares mitigated earlier losses, closing the day 0.2% lower after the announcement of its acquisition deal with Warner Bros. Discovery. For the week, the S&P 500 has increased by 0.1%, potentially marking its first consecutive weekly gain since October. The Nasdaq is up by 0.6%, and the Dow Jones has risen by 0.3%.