U.S. Stocks Up Despite Weekly Losses Amid Inflation Concerns

U.S. stocks rose Friday afternoon after inflation data matched expectations, though indexes are set to post weekly losses. The Fed's future interest rate path is under scrutiny, as investors prepare for the quarter's end amid economic volatility, new tariffs, and concerns over a possible government shutdown.

On Friday afternoon, U.S. stocks experienced an uptick following largely expected inflation figures, although they are still poised to end the week in the red. The Personal Consumption Expenditures Price Index rose by 0.3% in August, echoing economist forecasts.

Market participants remain wary, scrutinizing economic data amidst speculation over the Federal Reserve's interest rate strategy. The previous week, the Fed implemented its first rate cut since December, fueling questions about its future decisions, particularly as quarter-end approaches.

Adding to the economic uncertainty are President Trump's newly announced tariffs and fears of a possible government shutdown, which could disrupt market stability and data availability. While truckmaker Paccar and drugmaker Eli Lilly saw gains, Costco Wholesale's stock declined post-earnings report.

(With inputs from agencies.)