Stock Market News on July 26, 2024

stock Friday’s riseWall Street ended a volatile week on a positive note as investors focused on the latest U.S. inflation data.

this Dow Jones Industrial Average It closed up 654.27 points, or 1.64%, at 40,589.34 points. S&P 500 rose 1.11% to 5,459.10 points, while Nasdaq Composite Index It rose 1.03% to close at 17,357.88 points.

Sam Stovall of CFRA Research said Friday’s move was driven by oversold sentiment, Thursday’s stronger-than-expected GDP report and the view that the Federal Reserve will begin cutting interest rates as the economy recovers.

“The PCE report came out today that was good and helped the market out of the trough,” he added. “With this pullback, the big rotation continues and breadth continues to be on our side.”

Investors continued to shift their focus toward cyclical market sectors and small-cap stocks, with the Russell 2000 index rising 1.67%. Gains in industrial and materials stocks pushed the S&P sectors up about 1.7%. 3M Soared 23%, Leading the rise of industrial sector. The stock hit a record The best day since at least 1972.

Some technology stocks that have underperformed in this week’s sell-off rose, with Microsoft and Amazon both up more than 1%. Meta Platforms rose nearly 3%. The S&P information technology sector rose about 1%.

Wall Street also assesses June Personal Consumption Expenditures Price IndexThis is the inflation data favored by central bank policymakers. Overall personal consumption expenditures rose 0.1% That was 2.5% higher than the same period last year, in line with expectations of economists surveyed by Dow Jones.

The positive inflation news also boosted investor sentiment Further rate cuts expected this yearThe fed funds futures market already prices in rate cuts in September, November and December.

“The data is getting more dovish,” said Ken Mahoney, president of Mahoney Asset Management. “You’re starting to see some cracks in housing and real estate. They’re going to stop messing around and start lowering rates.”

The data came at the end of a turbulent week on Wall Street. The S&P 500 fell 0.8% and the Nasdaq dropped 2.1%. Both indexes fell for two weeks in a row for the first time since April. The Dow Jones outperformed, rising 0.8% and notching its first fourth straight week of gains since May. Investors seemed to be Participate in small-cap rotation and cyclical stocks.

In other news: Medical device manufacturers Dexcom Shares of the footwear company plunged 41% after it issued disappointing full-year financial guidance. Dex The company reported first-quarter earnings and revenue that beat analysts’ expectations, sending its shares up 6%.