Stocks managed to record higher trading volumes ahead of the long holiday weekend.
encouraging data inflation (opens in new tab) Fed’s relentless interest rate hikes eased tensions among traders reeling in December degree of interest (opens in new tab) That said, there are not many market participants at this time of year, making it difficult to derive anything from the behavior of equity benchmarks.
Especially this year. stock market will be closed (opens in new tab) The Monday that celebrates Christmas, which falls on the weekend of 2022.
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For the most part, economic data on durable goods and inflation led Friday’s session.
Regarding the former, the Department of Commerce reports: durable goods (opens in new tab) Orders plunged 2.1% in November, well below economists’ forecast of a 0.6% decline.It is also an inflation indicator recommended by the Fed. Personal Consumption Expenditure Price Index (opens in new tab) (PCE).
According to the latest report, Inflation slows in November (opens in new tab) Prices increased by 5.5% compared to the previous month. This is in line with the economist’s forecast and represents a slowdown from his 6.1% monthly price increase in October. Data showing the Fed’s success in containing the worst inflation rate in 40 years is generally applauded by the market. interest rate hike (opens in new tab) .
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In less bullish news, the PCE report also showed: consumer spending (opens in new tab) rose just 0.1% in November, representing a slowdown from October’s 0.9% rise. The figure worried at least some market participants as it could hint at a possible slowdown in consumer spending.
“Personal income and spending reports for November were close to what the market expected, but consumption was relatively weak in both nominal and real terms,” writes Eugenio J. Alemán. Raymond James (opens in new tab) “The report was consistent with reports of retail sales earlier this month, when consumption of goods was very weak and consumption of services relatively strong.”
At the closing bell, Blue Chip Dow Jones Industrial Average Added 0.5% to finish at 33,203. S&P 500 It was 3,844, up 0.6%.tech heavy NASDAQ Composite It rose 0.2% to close at 10,497.
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