(Reuters) – The New York Stock Exchange ended higher on Friday, led by a recovery in U.S. big-cap technology stocks and a PCE inflation figure that did not undermine expectations of a September interest rate cut.
The Dow Jones index gained 1.60% or 637.94 points, to 40,573.01 points.
The broader S&P 500 gained 56.52 points, or 1.05%, to 5,455.74 points.
The Nasdaq Composite rose 146.85 points (+0.85%) to 17,328.58 points.
Over the week, the S&P 500 lost 0.83%, the Nasdaq 2.08% while the Dow gained 0.75%.
The Dow Jones led the way, led by industrial group 3M, whose shares jumped 22.99% after raising the bottom of its adjusted annual profit forecast range on Friday.
The S&P 500 and the Nasdaq Composite also ended the week higher, helped by rebounds in large-cap stocks after their declines in the previous two sessions.
The Magnificent Seven, Wall Street’s largest-cap technology stocks, mostly advanced, led by Meta Platforms (+2.7%).
Chip giants Intel, Broadcom, Qualcomm, Micron Technology and Arm Holdings also recovered on Friday.
Economically sensitive small caps advanced, with the Russell 2000 and S&P Small Cap 600 both hitting their fourth closing highs of the week.
Fears of an overvaluation of the “Magnificent Seven” have made small and mid-caps more attractive, helped by hopes of a rate cut. Traders continue to bet on a first rate cut by the Federal Reserve in September.
The US PCE inflation figure, in line with expectations at +0.1% over one month in June, did not call into question this hypothesis of a drop in September.
(Written by Kate Entringer)
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