US markets end higher with notable gains on Friday

21 Dec 2024 Evaluate

The US markets ended higher with notable gains on Friday. During the session, the major averages recovered from initial weakness and climbed firmly into positive territory as traders reacted to the release of the Federal Reserve's preferred readings on consumer price inflation. The Commerce Department said its personal consumption expenditures (PCE) price index inched up by 0.1 percent in November after rising by 0.2 percent in October. Street had expected prices to increase by another 0.2 percent. The annual rate of growth by the PCE price index accelerated to 2.4 percent in November from 2.3 percent in October, slightly slower than the 2.5 percent jump economists had expected. Excluding food and energy prices, the core PCE price index also edged up by 0.1 percent in November after climbing by 0.3 percent in October. Economists had expected core prices to rise by 0.2 percent.

The annual rate of growth by the core PCE price index in November came in at 2.8 percent, unchanged from October, while street had expected an acceleration to 2.9 percent. The slower than expected annual rates of growth seemingly inspired traders to pick up stocks at relatively reduced levels following the mid-week sell-off. Meanwhile, traders largely shrugged off concerns about a potential U.S. government shutdown, potentially reflecting optimism lawmakers will reach a last-minute deal, as is often the case.

Dow Jones Industrial Average rose 498.02 points or 1.18 percent to 42,840.26, Nasdaq added 199.83 points or 1.03 percent to 19,572.6 and S&P 500 was up by 63.77 points or 1.09 percent to 5,930.85.