Stocks rose in early trading on Friday after a Federal Reserve-backed inflation gauge showed price pressures easing in May, strengthening Wall Street’s expectations for at least one interest rate cut later this year.
The Nasdaq Composite rose 0.5%, the S&P 500 rose 0.4% and the Dow Jones Industrial Average added 0.2%.
The personal consumption expenditures (PCE) price index was flat in May after rising 0.3% in April. Core inflation, which excludes food and energy prices, was 0.1% in May and fell to an annualized 2.6%, the lowest since March 2021.
Nike (NKE) shares fell Friday morning after the apparel giant reported disappointing earnings after the close of trading on Thursday. The poor results also dragged down shares of competitors like Under Armour (UA) and Lululemon (LULU).
Trump Media (DJT) shares rose as investors reacted to the first 2024 presidential debate between former President Donald Trump and President Joe Biden.
Treasury yields and the dollar fell following Friday’s inflation data, while crude oil, gold and major cryptocurrencies were little changed.
Stocks rose on Thursday despite a volatile trading day, with the Nasdaq Composite Index up 0.3%, while the S&P 500 and Dow Jones Industrial Average each added about 0.1%. Popular artificial intelligence stocks such as Nvidia (NVDA) fell as the market reacted to poor earnings from Micron (MU).
The stocks that moved the most immediately after trading began
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Benefits:
- Trump Media & Technology Group (DJT): Shares of the former president’s media company, which runs the social media platform Truth Social, were up about 3% on Friday morning following the first 2024 presidential debate.
- Infinera (INFN): Shares rose 18% after Finnish telecommunications company Nokia (NOK) announced plans to buy the chipmaker for $2.3 billion.
- UnitedHealth Group (UNH): Shares of the health care giant rose 2% after the company announced a $20 million settlement with the Department of Justice on Thursday over allegations that one of its subsidiaries, OptumRx, illegally filled prescriptions for potentially red flag opioids that may not have a medical use.
loss:
- Nike (NKE): Shares of the apparel giant fell 18% after the close of trading on Thursday after the company reported weaker-than-expected earnings and a weaker-than-expected outlook for fiscal 2025. Other apparel stocks including Skechers (SKX), Under Armour (UA) and Lululemon (LULU) also fell.
- Rocket Pharmaceuticals (RCKT): Rocket Pharmaceuticals shares fell 6% after the company said the FDA had rejected one of its products and requested more information about a drug intended to treat a pediatric immunodeficiency disorder.
- Chewy (CHWY): Shares of the pet-focused e-commerce company were caught up in the meme-stock craze and soared Thursday after Keith Gill, also known as “Roaring Kitty,” posted a dog-related meme to X before snapping back to reality and falling 10%.
Stock Futures Continue to Rise Despite PCE Fall
1 hour 23 minutes ago
Futures contracts linked to the Dow Jones Industrial Average rose less than 0.1% in premarket trading Friday.
S&P 500 futures rose 0.2%.
Nasdaq 100 futures rose 0.3%.
