US equity indexes eked out a gain this week as data signaling stable economic growth and talks of more China stimulus helped outweigh the impact of mixed inflation readings.
* The Dow Jones Industrial Average ended at 42,313.00 on Friday, compared with 42,063.36 a week ago. The Nasdaq Composite closed at 18,119.59 versus 17,948.32 a week prior, and the S&P 500 finished at 5,738.17 compared with 5,702.55 a week earlier. Basic materials, the home to industries such as aluminum, building materials, and copper, topped the US sector charts.
* In Beijing on Thursday, the nation's Politburo vowed the "necessary fiscal spending" required to reach its annual 5% gross domestic product growth target and to support property markets after recent monetary easing moves by the People's Bank of China.
* On the same day, US Q2 GDP growth remained unrevised from the previous estimate, beating consensus. US initial jobless claims unexpectedly fell in the week ended Sept. 21. The four-week moving average also declined.
* On Friday, the August core personal consumption expenditures price index slowed from a month ago while year-over-year core PCE accelerated for the first time since January 2023. According to John Choong, head of equities and markets at Investors Edge, declining energy costs and deflation from goods drove the deceleration.
* While the headline offered support for the Fed's larger 50 basis point cut last week, a "tick higher in the core after one month of sideways movement coupled with a lack of further improvement in the core CPI and core PPI last month suggests there remain upside inflationary risks," Stifel Chief Economist Lindsey Piegza said.
* Following the PCE data, the probability of a 50 basis point cut in interest rates in November rose to 54.8% from 49.3% a day ago, according to the FedWatch Tool Friday. The remaining 45.2% likelihood was for a 25 basis-point reduction.
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