US Stocks Rally as July Inflation Data Fuels 1% Nasdaq Gain

US stock markets saw a significant boost on Friday after the release of encouraging inflation data for July. By 9:53 am Eastern Time, major indices showed notable increases: the S&P 500 rose by 0.6%, the Dow Jones Industrial Average gained 0.1%, and the Nasdaq Composite jumped by 1%.

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At the start of the trading day, the Dow Jones added 31.11 points, or 0.08%, reaching 41,366.16. The S&P 500 increased by 20.78 points, or 0.37%, to 5,612.74, and the Nasdaq Composite surged by 134.06 points, or 0.77%, reaching 17,650.49. This rise in stock prices is attributed to new inflation data and the growing belief that the Federal Reserve might lower interest rates soon.

The Personal Consumption Expenditures (PCE) price index, which the Federal Reserve uses to gauge inflation, showed a slight increase from 0.1% in June to 0.2% in July, while remaining steady at 2.5% compared to the previous year. This data has boosted expectations that the Fed will consider reducing interest rates in its September meeting to support economic growth.

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In company news, Marvell Technology’s stock soared by 7.8% following a strong quarterly earnings report. Broadcom shares rose by 3.3%, and Nvidia saw a 2.2% increase. Dell Technologies also saw its stock climb by 2.9% after reporting better-than-expected earnings for the second quarter, thanks to strong demand for its server and networking products as businesses invest in artificial intelligence.

In the bond market, the yield on the 10-year Treasury note increased slightly to 3.88% from 3.86% the previous day, reflecting investor expectations about future economic conditions.

Bullion Market:

Gold prices held steady amid global uncertainties. As of 11:32 GMT, spot gold was priced at $2,520.36 per ounce, while US gold futures fell slightly by 0.3% to $2,552.90. On the other hand, spot silver prices rose by 0.2% to $29.51 per ounce.

Crude Oil Market:

Crude oil prices rose for the second consecutive day, supported by positive economic data from the US and ongoing supply issues in Libya. Brent crude for October delivery traded around $80 per barrel, reflecting a 1.6% increase from the previous day. West Texas Intermediate crude was priced just below $76 per barrel.

Overall, the positive market reaction to the latest inflation data and economic reports suggests growing investor confidence and anticipation of potential changes in monetary policy.

Also Read: U.S. Stock Market Gains as Investors Await Economic Data and Fed Decision