Stocks rose on Friday afternoon amid signs of a cooling from the Federal Reserve’s preferred inflation measure, as curbing price pressures remains a priority for policymakers.
The S&P 500 (^GSPC) rose more than 1%, while the Dow Jones Industrial Average (^DJI) gained about 250 points, or 0.74%, both building on Thursday’s gains. Nasdaq Composite (^IXIC) added 1.38%.
The inflation index showed prices rose 3.8% on a year-on-year basis in May, down from 4.4% year-on-year in April. From April to May, prices rose only 0.1%.
The data came after a surprise upward revision to first-quarter gross domestic product that showed the U.S. economy was much stronger than Wall Street had thought. Increasing confidence in that strength has helped fuel the stock’s rally this year, though those rates of regression remain high over the long term.
Friday is a key trading day – the last in the second quarter and the first half of 2023. All three major stock benchmarks are on track to post strong performance in both periods.
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