Wall Street Rebounds as Inflation Moderates: Dow Hits One-Month High

Wall Street saw a resurgence on Friday with notable gains led by the Dow Index, driven by a moderation in PCE inflation and strong performance from industrial conglomerates like 3M. Despite tech stocks' recent volatility, the market remained optimistic on future rate cuts by the Fed in September.

Wall Street bounced back on Friday, led by the blue-chip Dow, as some megacap tech and chip stocks recovered from the week's setbacks. A largely in-line key inflation reading fueled hopes of an early rate cut. The Dow surged 19%, propelled by a strong performance from industrial conglomerate 3M, hitting a one-month high.

The Philadelphia SE Semiconductor index was set to break a three-day losing streak with Nvidia, Marvell Technology, Broadcom, Texas Instruments, and Qualcomm all rising by more than 1%. The 'Magnificent Seven' stocks were mixed; while Microsoft and Meta Platforms gained, Tesla and Alphabet saw declines.

The 10-year Treasury yield dipped following the inflation data, and small-cap stocks rose with the Russell 2000 jumping 1%, positioning itself for its best three-week run since August 2022. Market bets on a 25-basis-point cut by the Fed in September held steady, reflecting positive sentiment ahead of the central bank's July policy decision.

(With inputs from agencies.)