Stocks rose Friday as the major averages head for weekly losses and investors anticipated a reading of the Federal Reserve’s preferred inflation gauge.
The Dow Jones Industrial Average traded 418 points higher, or 1%. The S&P 500 climbed 0.8%, and the Nasdaq Composite advanced 0.8%.
Wall Street assessed June’s personal consumption expenditures price index, an inflation reading that’s preferred by central bank policymakers. On a monthly basis, headline PCE rose 0.1% and by 2.5% from a year ago. That was in line with estimates from economists polled by Dow Jones.
That data comes at the end of a volatile week on Wall Street. The S&P 500 is down 1.3% this week, while the Nasdaq has lost 2.4%. The Dow is down roughly 0.2% week to date. Those declines come as investors seemed to be part of a broader rotation into small caps and more cyclical areas of the market.
“Volatility came back with a vengeance this week as selling pressure in the megacap space dragged down the broader market,” LPL Financial chief technical strategist Adam Turnquist said in a note to clients, adding that overbought conditions have also contributed to the recent weakness. ″Counterbalancing weakness in these heavyweight names poses a challenge for the rest of the market.”
Medical device maker Dexcom plunged 38% after releasing disappointing fiscal full-year guidance. Footwear company Deckers reported fiscal first-quarter earnings and revenue that exceeded analysts’ expectations, boosting shares by 13%.
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