Stocks climbed on Friday, closing the week higher after the release of in-line inflation data. However, the S&P 500 saw its three-week winning streak come to an end.
Why it matters: The market’s reaction to the inflation data and other economic indicators provides insight into investor sentiment and expectations for future Federal Reserve policy decisions.
The details:
- The Dow Jones Industrial Average rose by 299.97 points, or 0.65%, to close at 46,247.29.
- The Nasdaq Composite increased by 0.59% to finish at 6,643.70.
- The S&P 500 rose by 0.44%, settling at 22,484.07.
- Despite Friday’s rally, the major indexes ended the week down, with the Nasdaq Composite and S&P 500 sliding 0.7% and 0.3% respectively, each marking their first losing week in a month.
August’s personal consumption expenditures price index, the Federal Reserve’s preferred inflation measure, showed core inflation running at a 2.9% seasonally adjusted annual rate, in line with economists’ expectations.
What they’re saying:
- “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,” said David Russell, the global head of market strategy at TradeStation.
- “Valuations are high, [and] breadth has got some issues, but there’s so much money going in. The bullish push, the bullish momentum, is really hard to deny, and it doesn’t end early. These tops take a process,” noted Jeffrey Hirsch, editor of the Stock Trader’s Almanac.
The other side: Analysts at BTIG suggest that stocks could be susceptible to a pullback, which might provide a buying opportunity for investors.
What’s next: Markets will continue to closely watch economic data and potential moves by the Federal Reserve. Despite concerns about high valuations and a potential October pullback, many analysts remain optimistic about the potential for a year-end rally.
Recent from X
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
#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
#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
