The Dow Jones Industrial Average (DJIA) and the S&P 500 closed out their third consecutive week of gains, fueled by impressive earnings from major tech companies and optimism surrounding the Federal Reserve’s actions to combat inflation. The DJIA rose 176 points, or 0.5%, to reach 35,459, resulting in a weekly gain of 0.7%. Simultaneously, the S&P 500 advanced by 1%, while the Nasdaq Composite saw a 2% increase for the week, according to Dow Jones Market Data.
Earlier in the week, the DJIA experienced its longest winning streak since 1987. However, this streak was interrupted due to reports that the Bank of Japan may discuss adjusting its yield-curve control policy. Consequently, U.S. Treasury yields rose significantly. The Bank of Japan decided to loosen its grip on Japanese government bond yields, resulting in the highest yield on the 10-year JGB since 2014.
In U.S. economic news, the personal consumption expenditures price index revealed that inflation eased by 0.2% in June compared to a 0.3% increase in May. The core inflation rate, which excludes volatile food and energy prices, rose by 4.1% over the past year, a considerable decrease from May’s 4.6% rise. Despite this decline, it remains well above the Fed’s targeted 2% level.
Meanwhile, consumer spending demonstrated resilience by rising 0.5% in June, signifying confidence among consumers as inflation continued to ease and the U.S. economy sustained its growth momentum.
