The S&P 500 rose Friday after cooler inflation data, with the major averages registering an eighth straight winning week as Wall Street looked to extend its year-end rally.
The broad market index gained 0.17% to 4,754.63. At current levels, the S&P 500 is 0.9% from its record close, and 1.3% from its intraday record.
The Nasdaq Composite rose by 0.19% to 14,992.97. The Dow Jones Industrial Average fell 18.38 points, or 0.05%, to 37,385.97.
The three major averages notched their eighth positive week in a row — a first for the S&P 500 since 2017 and for the Dow dating back to 2019. The S&P 500 advanced by 0.8% for the week, while the Dow added 0.2%. The Nasdaq jumped 1.2% in the period.
Dow component Nike dropped nearly 12% after lowering its sales outlook, and announcing plans to cut costs by about $2 billion over the next three years.
The Federal Reserve’s favorite inflation gauge came in less than expected. The November core personal consumption expenditures price index rose just 0.1% last month, and gained 3.2% from a year ago, about in line with expectations. Economists polled by Dow Jones anticipated a monthly increase of 0.1% and 3.3% from a year earlier.
“We believe that today’s PCE data, which the Fed weighs heavily in its review of inflation status, further cemented the downward trajectory of inflation,” said Greg Bassuk, chief executive officer at AXS Investments. “And we think that’s another catalyst for today’s excitement by investors, that a soft landing seems closer to being assured.”
The market rally has recently broadened out as bond yields fall and traders bet on rate cuts from the central bank. On Friday, the small-cap Russell 2000 gained 0.8%, posting its sixth straight positive week.
“It underscores the breadth and depth of this holiday rally, which we think is going to bode well for investors moving into 2024,” Bassuk said.
The U.S. stock market will be closed on Monday for Christmas.