Stocks on Wall Street rose on Friday, after the release of inflation data showed a moderating pace of price increases. Indexes were also higher in Europe and Asia, following a rally in the United States the day before. The S&P 500 broke a streak of seven consecutive weekly declines dating to early April.
Investors put more than $20 billion into global stocks this week, mostly in the United States, according to Bank of America. That was the largest net inflow in 10 weeks, the bank’s analysts said in a report, suggesting that a “summer rally bandwagon” is gaining momentum.
The S&P 500 rose 2.5 percent, while the Nasdaq composite rose 3.3 percent. The S&P 500 ended the week 6.6 percent higher — its best week since April 2020. Last week, the benchmark index briefly dropped into bear market territory, defined as a 20 percent decline from a recent peak. It remains 13.3 percent below the high it reached in early January.
The Personal Consumption Expenditure price index, the Federal Reserve’s preferred inflation gauge, showed that its core measure, which excludes food and energy, increased 0.3 percent in April, and 4.9 percent versus the same month last year. That was a slower rate than other months this year, which could be an important factor in the Federal Reserve’s thinking as it considers whether to raise interest rates more aggressively to rein in inflation.
In Europe, the Stoxx 600 index gained 1.5 percent. Hong Kong’s Hang Seng was the standout performer in Asia, up nearly 3 percent, after the Chinese tech giants Alibaba and Baidu reported better-than-expected earnings.