Wall Street ends a strong August amid expectations of a rate cut in September.
All indices rose during the last session and for the month, with investors focusing on the upcoming Federal Reserve meeting in mid-September.
All three major Wall Street indexes closed Friday’s trading with gains. The U.S. averages advanced, supported by a U.S. price data point that reinforced expectations of a rate cut in September.
The Dow Jones Industrial Average, composed of 30 giant stocks, rose 0.55% to 41,563.08 points. The S&P 500, which tracks 500 stocks, climbed 1.01% to 5,648.08 points. The tech-heavy Nasdaq Composite gained 1.13% to close at 17,713 points.
The Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge, increased 0.2% month-over-month and 2.5% year-over-year, in line with The Wall Street Journal’s consensus estimates. This data supports the expectation of a rate cut.
Among tech stocks, Nvidia, which saw its shares rise 1.51%, rebounded after losing over 8% in two days, despite reporting record quarterly figures with revenue of $56.084 billion, a 171% increase.
All sectors recorded gains, with the biggest advances in consumer discretionary (1.92%), industrials (1.11%), and technology (1.06%). Within the Dow Jones, Intel stood out with a 9.49% gain, followed by Amazon (3.71%) and IBM (1.62%).
The three indexes wrapped up a positive month, buoyed by bets that the Federal Reserve will lower interest rates at its mid-September meeting. The Dow Jones gained 1.76%, the S&P 500 rose 2.28%, and the Nasdaq advanced 0.65%.
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