by Sinéad Carew and Ankika Biswas
(Reuters) – The New York Stock Exchange ended higher on Friday as investors appreciated inflation data as the energy sector benefited from higher oil prices.
The Dow Jones Industrial Average rose 0.53%, or 176.44 points, to 33,203.93.
The broader S&P-500 rose 22.43 points, or 0.59%, to 3,844.82.
The Nasdaq Composite, on the other hand, rose by 21.74 points (0.21%) to 10,497.86 points.
Data released by the US Commerce Department showed US consumer spending barely rose in November, while inflation eased again, but not enough to deter the Federal Reserve (Fed) from raising interest rates to higher levels next year.
For its part, the PCE price index, closely watched by the Fed to set its monetary policy, rose 0.1% last month after rising 0.4% in October.
Indices ended sharply lower on Thursday as data indicating the resilience of the US economy fueled fears that the Fed would continue its monetary tightening to fight inflation longer than expected, risking a recession.
However, the numbers released on Friday, in line with expectations, reassured investors, according to Shawn Cruz, strategist at TD Ameritrade.
“The market wants the Fed to understand that it has done enough,” Shawn Cruz said. “He wonders which path she will follow next year as that is what will stimulate the economy and corporate performance.”
Shawn Cruz points out that low trading volumes may have exaggerated stock market moves seen on Thursday and Friday, the final sessions before a long weekend, with US markets remaining closed on Monday after the Christmas holiday.
The energy sector advanced throughout the session, with oil prices rising after Russia said it may cut crude output in response to the G7 price cap on Russian exports.
Tesla hit its lowest level in more than two years despite Elon Musk’s announcement that he would not sell any more shares in the automaker for about two years, which was initially well received.
Dow Jones parent News Corporation advanced following reports that billionaire Michael Bloomberg, founder and CEO of the Bloomberg Group, plans to buy the Wall Street Journal publisher.
(Reporting by Sinéad Carew, Shubham Batra, Bansari Mayur Kamdar, Ankika Biswas and Johann M Cherian; French version by Camille Raynaud)
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