Major U.S. benchmarks finished higher on Friday, as cooler-than-expected inflation data relieved investors and helped stem the bearish sentiment that had dominated earlier in the week.
The Dow Jones Industrial Average rebounded strongly on Friday, gaining 498.0 points, or 1.2%, to close at 42,840.3, after a week marked by significant volatility.
Meanwhile, the S&P 500 rose 1.1% to end at 5,930.9, while the Nasdaq Composite advanced 1% to 19,572.6 points.
Despite the day’s gains, all three major indices posted weekly losses, with the Dow down nearly 2.3%, the S&P 500 falling almost 2%, and the Nasdaq losing 1.8%.
November’s personal consumption expenditures (PCE) price index, a key inflation metric favoured by the Federal Reserve, rose 2.4% year-over-year, slightly below expectations of 2.5%.
Friday's gains saw all 11 S&P 500 sectors end higher, with real estate and information technology leading the charge.
The positive session followed a challenging week for the Dow, which recorded its longest losing streak since 1974 after plunging 1,100 points on Wednesday. This decline came after the Fed projected only two rate cuts next year, instead of the previously anticipated four.
On the bond markets, 10-year and 2-year rates were at 4.53% and 4.319%, respectively.