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HomeLatestWall Street Closes Up, Notches Another Weekly Gain Ahead of Inflation Data
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Wall Street Closes Up, Notches Another Weekly Gain Ahead of Inflation Data

U.S. equities edged higher on Friday, capping off another week of gains for all three major indexes as investors digested comments from Federal Reserve officials and anticipated key inflation data scheduled for release next week.

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The S&P 500 and the Dow Jones Industrial Average saw modest gains, while the Nasdaq Composite ended the session nearly unchanged. Nonetheless, all three indices secured weekly advances, with the Dow marking its most significant Friday-to-Friday percentage gain since mid-December.

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Investors closely monitored remarks from various Federal Reserve policymakers, seeking insights into the future trajectory of monetary policy amid concerns about inflation. Atlanta Fed President Raphael Bostic acknowledged signs of economic slowdown but remained noncommittal about the timing of potential rate adjustments. Conversely, Dallas Fed President Lorie Logan adopted a more hawkish stance, expressing uncertainty about whether current monetary policy measures were sufficiently restrictive to achieve the Fed’s 2% inflation target.

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Market sentiment pivoted toward next week’s release of key inflation indicators, including the Consumer Price Index (CPI) and the Producer Price Index (PPI) by the Labor Department. Analysts anticipate the CPI report to reveal a year-on-year core price increase of 3.6%, potentially marking the lowest reading in over three years.

Paul Nolte, senior wealth advisor & market strategist at Murphy & Sylvest in Elmhurst, Illinois, noted the Fed’s inclination towards maintaining accommodative monetary policies, even amidst inflationary pressures.

In economic news, the preliminary May Consumer Sentiment data from the University of Michigan revealed a substantial decline, accompanied by heightened near- and long-term inflation expectations, signaling potential challenges for consumer confidence.

Among individual stocks, Nvidia saw a 1.3% increase following positive sales data from Taiwan Semiconductor Manufacturing Co, a key supplier to Nvidia. Novavax shares surged by nearly 99% after announcing a lucrative licensing deal with Sanofi, while SoundHound AI recorded a 7.2% jump after surpassing first-quarter revenue estimates.

Despite overall market gains, declining issues slightly outnumbered advancing ones on both the NYSE and Nasdaq exchanges.

Looking ahead, investors remain vigilant as earnings season nears its conclusion, with a majority of S&P 500 companies surpassing consensus estimates thus far.

Market activity on U.S. exchanges saw a lower-than-average volume for the session.

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