Wall Street Rises on Inflation Data and Federal Reserve Hopes

Wall Street's main indexes rose due to positive inflation data, boosting hopes for an interest-rate cut at the U.S. Federal Reserve's September meeting. The Personal Consumption Expenditure index grew by 2.5% annually in July. Technology and semiconductor stocks led the gains with notable performances from Amazon, Microsoft, and Broadcom.

Wall Street's main indexes rose on Friday, buoyed by positive inflation data, and set for monthly gains. The key inflation report reaffirmed moderating price pressures, enhancing expectations for an interest-rate cut at the U.S. Federal Reserve's September meeting.

The Personal Consumption Expenditure index, the preferred inflation gauge for the central bank, increased by 2.5% annually in July, aligning closely with economist estimates. The monthly rise was 0.2% as projected. Among the stocks, technology and semiconductors showed notable gains; Amazon.com, Microsoft, Broadcom, and Advanced Micro Devices contributed significantly to the market uplift.

This report is crucial as it precedes the Fed's September meeting, which follows Chair Jerome Powell’s supportive comments for an imminent policy shift. Market odds for a 25-basis-point reduction stood at 69.5%. Despite initial volatility, broader indices including the Dow, S&P 500, and Nasdaq were up by 0.28%, 0.65%, and 0.89%, respectively.