US stocks rally as inflation data meets expectations

US stocks surged on Friday, with the Dow Jones Industrial Average hitting a new record high as investors closed out a turbulent month on a positive note. Traders were also digesting key inflation data closely monitored by the Federal Reserve.

The Dow climbed 228.03 points, or 0.55 per cent, to finish at 41,563.08. The blue-chip index reached a fresh all-time high in the final moments of the trading session, marking another record close.

The S&P 500 gained 1.01 per cent to close at 5,648.40, while the tech-heavy Nasdaq Composite rose 1.13 per cent to end at 17,713.62.

Turning to US sectors, all closed higher on Friday. Consumer Discretionary was the best performer, up by almost 2 per cent. Energy recorded the fewest gains.

In company news, Intel stock rose 9.5 per cent on news of potential business restructuring. Elastic NV stock fell over 26 per cent due to missed revenue forecasts. MongoDB stock surged 18.3 per cent following strong earnings and revenue results.

The personal consumption expenditures (PCE) price index, the Fed's preferred inflation gauge, increased by 0.2 per cent in July and 2.5 per cent year-over-year, aligning with economists' expectations. When excluding food and energy, the index also rose 0.2 per cent from the previous month.

The Fed closely monitors this inflation metric, which could still play a crucial role in its rate decision in September.

For August, the S&P 500 posted a 2.3 per cent gain, while the Dow increased nearly 1.8 per cent. The Nasdaq Composite advanced 0.7 per cent for the month. The S&P 500 recorded its fourth consecutive month of gains, driven by strong performances in consumer staples, real estate, and health care sectors.

Futures

The SPI futures are pointing to a 0.2 per cent fall.

Currency

One Australian dollar at 7.35am was buying 67.66 US cents.

Commodities

Gold lost 1.28 per cent. Silver fell 2.82 per cent. Copper shed 0.26 per cent. Oil dropped 3.11 per cent.

Figures around the globe

European markets closed lower. London’s FTSE lost 0.04 per cent, Frankfurt fell 0.03 per cent, and Paris closed 0.13 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei added 0.74 per cent, Hong Kong’s Hang Seng gained 1.14 per cent, while China’s Shanghai Composite closed 0.68 per cent higher.

On Friday, the Australian share market closed 0.58 per cent higher at 8091.85.

Ex-dividends
Arn Media Limited (ASX:A1N) is paying 1.2 cents fully franked
Bendigo and Adelaide (ASX:BEN) is paying 33 cents fully franked
Consolidated Ops Gp (ASX:COG) is paying 4.4 cents fully franked
Equity Hl (ASX:EQT) is paying 53 cents fully franked
Gr Engineering Ltd (ASX:GNG) is paying 10 cents fully franked
Integrated Research (ASX:IRI) is paying 2 cents fully franked
Pengna Glbal Private (ASX:PCX) is paying 1.16 0
Prime Financial (ASX:PFG) is paying 0.85 cents fully franked
Propel Funeral (ASX:PFP) is paying 7.2 cents fully franked
Pinnacle Investment (ASX:PNI) is paying 26.4 71.96
Sequoia Fin Grp Ltd (ASX:SEQ) is paying 5 cents fully franked
TABCORP Holdings Ltd (ASX:TAH) is paying 0.3 0
Worley Limited (ASX:WOR) is paying 25 0

Dividends payable
Reckon Ltd (ASX:RKN)
Seven Group Holdings Ltd (ASX:SVW)
Dicker Data Ltd (ASX:DDR)
National Storage REIT (ASX:NSR)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.

Disclaimer

The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.
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