US stocks surge after inflation data shows slower price growth

U.S. stocks rallied on Friday as investors reacted to key inflation data, which revealed a deceleration in price increases for November.

The tech-heavy Nasdaq Composite gained close to 1.5%. The S&P 500 rose 1.5% while the Dow Jones Industrial Average put on 1.6%, News.Az reports, citing foreign media.

The latest reading of the Fed's preferred inflation gauge, the core Personal Consumption Expenditures (PCE) index, showed price increases decelerated in November on a monthly basis and came in below economists' estimates. But they still remained sticky as the central bank fights to bring inflation back down to its 2% target.

A Fed-induced sell-off earlier in the week left the major averages reeling as the central bank projected fewer rate cuts for 2025 than it had previously forecast. And although stocks mostly stabilized on Thursday, the threat of a government shutdown, coupled with more Trump tariff threats on Europe, pressured global markets across the board early in Friday's session.

"I told the European Union that they must make up their tremendous deficit with the United States by the large scale purchase of our oil and gas," Trump said in a post on Truth Social. "Otherwise, it is TARIFFS all the way!!!"

Global chip stocks sold off and then recovered, with Europe's ASML up slightly during afternoon trading while Taiwan's TSMC fell less than 1%.

Bitcoin prices retreated to drop to roughly $97,000 per token amid record ETF outflows.

In individual names, Novo Nordisk plunged about 20% — the most in over two decades — after its obesity drug trial disappointed investors.

News.Az