US: Stocks end higher on encouraging inflation data
WALL Street stocks advanced on Friday (Jul 28), after a closely watched gauge showed that US inflation cooled further in June.
The Dow Jones Industrial Average rose 0.5 per cent to 35,459.29, while the broad-based S&P 500 climbed 1 per cent to 4,582.23.
The tech-heavy Nasdaq Composite Index surged 1.9 per cent to 14,316.66.
The movements came after government data showed that the Federal Reserve’s preferred gauge of inflation, the personal consumption expenditures price index, rose 3 per cent last month from the same period a year ago.
This was down from 3.8 per cent in May, extending a downward trend in positive news for policymakers looking to bring inflation back to their longer-run 2 per cent target.
Among individual companies, consumer goods giant Procter & Gamble shares ended 2.8 per cent higher after reporting an 11 per cent rise in profits to US$3.4 billion, in results boosted by price hikes.
Shares in Ford slumped 3.5 per cent, with the US auto giant saying its electric vehicle (EV) losses would be greater than expected in 2023 as it pushed back EV production targets.
Others that logged gains include Intel, whose shares rallied 6.6 per cent as it returned to profitability. AFP
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