Investing.com– U.S. stocks rose Friday, helped by data showing cooling inflation, lifting the chances of interest rates cuts near term.
At 06:30 ET (10:30 GMT), rose 255 points, or 0.7%, rose 45 points, or 0.8%, and rose 210 points, or 1.1%.
All three indices are still on course to post losing weeks, with the tech sector particularly hard hit following underwhelming earnings from Tesla (NASDAQ:) and Alphabet (NASDAQ:).
PCE data keeps rate cut hopes alive
Selling in tech was also driven by increased expectations for interest rate cuts, which saw investors lock profits in the sector and pivot into stocks with more exposure to an economic recovery.
The , the U.S. Federal Reserve’s preferred inflation metric, rose 0.1% on a monthly basis in June and 2.5% annually, both as expected.
The meets next week, when the central bank is widely expected to keep rates steady.
The in-line data kept bets for an interest-rate cut by September intact.
Tech earnings continue next week
Tech earnings are set to continue in the coming week, with Microsoft (NASDAQ:) and Apple (NASDAQ:) due on Tuesday and Thursday, respectively. Prints from Advanced Micro Devices (NASDAQ:), Qualcomm Incorporated (NASDAQ:) and Amazon (NASDAQ:) are also due next week.
On Friday, Bristol-Myers Squibb (NYSE:) stock rose over 7% after the drugmaker posted better-than-expected second-quarter results, driven by growth from new products like anemia treatment Reblozyl and heart drug Camzyos as well as from its top-seller, blood thinner Eliquis.
3M Company (NYSE:) stock soared 14% after the industrial conglomerate raised the low end of its full-year adjusted profit forecast expecting to benefit from restructuring measures and increasing demand for electronics.
Deckers Outdoor (NYSE:) stock rose 10% after the athletics shoes and apparel company raised its annual profit forecast following a first-quarter results beat.
On the flip side, DexCom (NASDAQ:) stock slumped 40% after the medical device maker cut its annual revenue forecast, saying it had fewer new customers than expected.
Crude set for weekly losses
Crude prices edged lower Friday, on track for a third straight week of decline, largely due to weak demand in China, the world’s largest crude importer.
By 06:30 ET, the U.S. crude futures (WTI) traded 0.3% lower to $78.04 a barrel, while the Brent contract fell 0.3% to $82.11 a barrel.
The contract was trading marginally lower this week, while WTI was down over 2%, and the benchmarks have fallen about 5% in the last three weeks.
Concerns over waning demand in China have weighed heavily, with data this week showing the Asian giant’s apparent oil demand fell 8.1% to 13.66 million barrels per day in June.
(Ambar Warrick contributed to this article.)
