U.S. Stocks Rise as Consumer Sentiment Soars and Inflation Eases
July 30, 2023
Stocks demonstrated an upward trend on Friday following revelations that U.S. consumer sentiment has increased and inflation levels have decreased. These indicators are stoking the fires of optimism that the economy could avert a recession. It also signals to the Federal Reserve that the current cycle of interest rate hikes could be halted.
Data from the U.S. Department of Commerce unveiled on Friday showed moderation in the June core personal consumption expenditures price index, the Federal Reserve’s preferred inflation measure, both monthly and annually. Consumer spending also increased in June, surpassing income growth rates.
Market analysts are predicting a continued ascent to new peaks, given the stronger-than-anticipated GDP report earlier this week and an earnings season that exceeded expectations. Over the week, the Nasdaq, which is heavily tech-based, rose by 2%, the S&P 500 saw a 1% increase, and the Dow Jones average also moved up by 0.6%.
Winning Streaks & Sector Performance
The Dow Jones managed to make gains on Friday after the snapping of its 13-day winning streak on Thursday, a run that has not been witnessed since 1987. Of the 11 S&P sectors, nine concluded trading positively. The Communication Services sector topped the leaderboard, rounding off the week with an impressive 6.8% increase.