by Sinéad Carew and Ankika Biswas
(Reuters) – The New York Stock Exchange ended higher on Friday as investors appreciated inflation data as the energy sector benefited from higher oil prices.
The Dow Jones Industrial Average gained 0.53%, or 176.44 points, to 33,203.93 points.
The broader S&P-500 gained 22.43 points, or 0.59%, to 3,844.82 points.
The Nasdaq Composite advanced for its part by 21.74 points (0.21%) to 10,497.86 points.
Data released by the US Commerce Department showed that US consumer spending barely rose in November, while inflation slowed again, but not enough to discourage the Federal Reserve (Fed) from raising interest rates. interest at higher levels next year.
For its part, the PCE price index, closely followed by the Fed to establish its monetary policy, rose 0.1% last month after rising 0.4% in October.
The indices ended sharply lower on Thursday, as data indicating the resilience of the US economy fueled fears that the Fed would continue its monetary tightening to fight inflation longer than expected, with the risk of a recession.
The figures released Friday, in line with expectations, however reassured investors, according to Shawn Cruz, strategist at TD Ameritrade.
“The market wants the Fed to understand that it has done enough,” said Shawn Cruz. “He wonders what path she will follow next year since this is what will stimulate the economy and the results of companies.”
Shawn Cruz points out that low trading volumes may have exaggerated stock market movements seen on Thursday and Friday, the last sessions before a long weekend, with US markets remaining closed Monday after Christmas celebrations.
The energy sector advanced throughout the session, with oil prices rising after Russia said it may cut crude production in response to the G7 price cap on Russian exports.
Tesla hit its lowest level in more than two years despite Elon Musk’s announcement that he would not sell any more shares in the automaker for about two years, which was initially well received.
Dow Jones parent company News Corporation advanced after reports emerged that billionaire Michael Bloomberg, founder and CEO of the Bloomberg Group, is planning to buy the Wall Street Journal publisher.
(Report Sinéad Carew, Shubham Batra, Bansari Mayur Kamdar, Ankika Biswas and Johann M Cherian; French version Camille Raynaud)
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