The stock market closed higher on Friday, buoyed by inflation data that came in line with expectations. However, the S&P 500 and Nasdaq Composite ended the week with losses, snapping a three-week winning streak. The Dow Jones Industrial Average rose 299.97 points, or 0.65%, to close at 46,247.29.
This morning's US economic data confirms a strong economy, with the Federal Reserve's preferred inflation gauge (PCE) settling near 3%.
Specifically, the latest income and spending figures came in stronger than expected, while the inflation readings were in line with consensus.…
— Mohamed A. El-Erian (@elerianm) September 26, 2025
The S&P 500 gained 0.59% to settle at 6,643.70, while the Nasdaq Composite added 0.44% to finish at 22,484.07. Despite Friday’s rally, the major indexes posted weekly declines. The Nasdaq Composite and S&P 500 slid 0.7% and 0.3% respectively, marking their first losing week in four.
#MarketAlert | US: After three consecutive days of losses, US markets rebounded on Friday after inline inflation data#USA #DowJones #Nasdaq #inflation #treasury #bonds #dollar #SnP pic.twitter.com/yM0I9g93hY
— ET NOW (@ETNOWlive) September 27, 2025
The Dow shed 0.2% for the week.
#MarketAlert | US: Latest S&P 500 VIX, Dollar Index, US 10Y and 30Y numbers👇#USA #SnP #Dollar #bonds pic.twitter.com/PG4Awq1CaK
— ET NOW (@ETNOWlive) September 27, 2025
The Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, showed that core inflation, excluding food and energy costs, ran at a 2.9% seasonally adjusted annual rate in August. This met economists’ forecasts polled by Dow Jones.
Inflation data boosts stocks on Friday
The all-items index also showed an annual rate of 2.7% and a monthly gain of 0.3%, both in line with expectations. David Russell, global head of market strategy at TradeStation, said, “Following a three-day pullback in the broader market, this is good enough to pull buyers off the sidelines.
Yesterday’s claims and GDP revision undermined the dovish narrative, but today’s PCE calms some of those worries. No news is good news.”
In corporate news, Electronic Arts (EA) shares surged more than 14% Friday afternoon following a report that the videogame maker is nearing a deal to go private. The deal, which could involve investors including private-equity firm Silver Lake and Saudi Arabia’s Public Investment Fund, might be revealed as soon as next week and could amount to roughly $50 billion, making it one of the largest leveraged buyouts of all time.
Other market movers included Paccar (PCAR), whose shares rallied about 5% after President Donald Trump announced a 25% tariff on imported heavy trucks starting October 1. Boeing (BA) stock also gained more than 4% after Turkish Airlines ordered 75 Boeing 787 aircraft and completed negotiations to buy 150 737 MAX planes. Looking ahead, Ulrike Hoffmann-Burchardi of UBS Financial Services noted that the macroeconomic backdrop remains supportive of equity returns.
Despite high valuations, strong earnings growth and Federal Reserve policy have historically had more influence on returns over the next 12 months.
