WASHINGTON (dpa-AFX) - Stocks turned mixed early in the session on Friday but have moved modestly higher over the course of the trading day. The major averages have all moved to the upside, with the tech-heavy Nasdaq rejoining the Dow and the S&P 500 in positive territory.
Currently, the major averages are just off their highs of the session. The Dow is up 339.99 points or 0.7 percent at 46,287.31, the S&P 500 is up 34.02 points or 0.5 percent at 6,638.74 and the Nasdaq is up 65.79 points or 0.3 percent at 22,450.49.
The strength on Wall Street reflects a positive reaction to a closely watched Commerce Department report showing consumer prices increased in line with economist estimates in the month of August.
The Commerce Department said its personal consumption expenditures (PCE) price index climbed by 0.3 percent in August after rising by 0.2 percent in July. The price growth matched expectations.
The annual rate of growth by the PCE price index ticked up to 2.7 percent in August from 2.6 percent in July, which was also in line with estimates.
Excluding food and energy prices, the core PCE price index rose by 0.2 percent in August, matching a revised increase in July as well as expectations.
The annual rate of growth by the core PCE price index came in at 2.9 percent in August, unchanged from July and in line with estimates.
The data has helped increase confidence the Federal Reserve will continue lowering interest rates in the coming months.
Meanwhile, traders have shrugged off the latest tariff news, with President Donald Trump announcing in a post on Truth Social that he will be imposing a 100 tariff on pharmaceuticals unless the company is building a manufacturing plant in the U.S.
Trump also announced a 25 percent tariff on heavy trucks and a 50 percent tariff on kitchen cabinets, bathroom vanities and associated products, with the new tariffs set to take effect October 1st.
Sector News
Gold stocks have moved sharply higher along with the price of the precious metal, driving the NYSE Arca Gold Bugs Index up by 2.3 percent.
Considerable strength has also emerged among airline stocks, as reflected by the 1.6 percent gain being posted by the NYSE Arca Airline Index. The index is bouncing off its lowest closing level in over a month.
Housing, energy and financial stocks are also seeing significant strength, moving higher along with most of the other major sectors.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index slumped by 0.9 percent, while China's Shanghai Composite Index slid by 0.7 percent.
Meanwhile, the major European markets moved to the upside on the day. While the French CAC 40 Index jumped by 1.0 percent, the German DAX Index advanced by 0.9 percent and the U.K.'s FTSE 100 Index climbed by 0.8 percent.
In the bond market, treasuries have shown a lack of direction over the course of the session. Currently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 4.183 percent.
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