FX.co ★ U.S. Stocks See Further Upside After Early Recovery

In a positive turn early in the session, stocks have experienced further gains throughout Friday's trading. The main indexes have steadily ascended, partly mitigating recent declines.

Presently, the key indexes are operating near their peak levels for the day. The Dow has surged by 807.31 points, or 1.9%, reaching 43,149.55. Similarly, the Nasdaq has climbed 358.09 points, or 1.9%, to 19,730.85, and the S&P 500 has increased by 106.43 points, or 1.8%, landing at 5,973.51.

This rally on Wall Street follows traders' reactions to the Federal Reserve's preferred indicators on consumer price inflation. According to the Commerce Department, the personal consumption expenditures (PCE) price index inched up by 0.1% in November, following a 0.2% rise in October. Economists had anticipated another 0.2% uptick.

The annual growth rate of the PCE price index accelerated to 2.4% in November from 2.3% in October, slightly slower than the 2.5% increase economists had expected. Excluding food and energy, the core PCE price index also edged up by 0.1% in November, after a 0.3% climb in October, while a 0.2% rise was forecasted by economists.

The core PCE price index maintained an annual growth rate of 2.8% in November, unchanged from October, whereas economists anticipated acceleration to 2.9%. The unexpectedly slower growth rates have prompted traders to acquire stocks at relatively reduced levels after the mid-week decline.

Stocks plummeted on Wednesday after the Fed projected fewer interest rate cuts next year than initially estimated due to persistent concerns about inflation.

In a conversation with CNBC's Steve Liesman, Chicago Fed President Austan Goolsbee expressed optimism that the recent firming in data is likely a temporary deviation rather than a shift in trajectory.

Investors have largely disregarded concerns about a potential U.S. government shutdown, possibly reflecting hope that lawmakers will negotiate a last-minute deal, as is often the case.

**Sector Highlights**

A significant upward movement in networking stocks has been noted today, as evidenced by a 2.7% increase in the NYSE Arca Networking Index. Similarly, semiconductor stocks exhibit considerable strength, as demonstrated by the 2.6% surge in the Philadelphia Semiconductor Index.

Commercial real estate stocks also continue to perform well, with the Dow Jones U.S. Real Estate Index jumping 2.5%, having ended the previous session at its lowest close in over five months.

Additionally, banking, gold, computer hardware, and airline stocks have recorded strong gains amid widespread buying interest on Wall Street.

**Global Markets**

In international trading, stock markets across the Asia-Pacific region mostly declined on Friday. China's Shanghai Composite Index edged down by 0.1%, Japan's Nikkei 225 Index dipped by 0.3%, and Australia's S&P/ASX 200 Index fell by 1.2%.

Conversely, European stocks recovered from their worst levels but still closed slightly lower. The German DAX Index fell by 0.4%, while both the French CAC 40 Index and the U.K.'s FTSE 100 Index slipped by 0.3%.

In bond markets, treasuries are reclaiming ground after significant drops in the previous two sessions. Consequently, the yield on the benchmark ten-year note, which inversely correlates with its price, declined by 7.4 basis points to 4.496%.