Stocks on the New York Stock Exchange recovered on Friday as the Personal Consumption Expenditures (PCE) report for June was released. Core PCE came in hotter than expected, however, it still rose at its slowest annual pace over the past three years.
The benchmark S&P 500 rose about 0.8%, thereby gradually recovering from its slump following the earnings disappointments from Big Tech companies including Google parent company Alphabet Inc. and Tesla. The tech-heavy Nasdaq Composite jumped 1.1% higher, while the Dow Jones Industrial Average edged 0.6% higher.
Core PCE for June rose by 2.6% on an annual basis, exceeding Wall Street estimates of a 2.5% rise but still the slowest increase in over three years. The Federal Reserve expressed optimism that inflation is heading toward its 2% target.
Looking ahead, investors are awaiting the release of further earnings reports from Big Tech firms, including from more “Magnificent Seven” companies. Apple, Amazon, Meta, and Microsoft are all set to release their quarterly earnings over the next week.