NEW YORK, New York – U.S. stocks rose sharply on Friday despite a key inflation indicator hitting its highest level in 39 years.
The personal consumption expenditures price index rose 6.8 percent, the largest 12-month move since a 6.9 percent gain in January 1982. The index jumped 1 percent from May, equal to its largest monthly gain since February 1981.
“Starting from a position of depressed sentiment and bearish positioning was an asset, but the bigger picture was a subtle shift in inflation and inflation expectations, and thus the market’s expectation for the Fed’s path,” Ross Mayfield, investment strategy analyst at Baird told CNBC Friday.
“Of late, corporate earnings resilience has only added to the bull case and likely put a near-term floor under equity markets.”
Technology stocks led the way Friday. The Nasdaq Composite surged 228.09 points or 1.88 percent to 12,390.69.
The Dow Jones industrials jumped 315.50 points or 0.97 percent to 32,845.13.
The Standard and Poor’s 500 rose 57.86 points or 1.42 percent to 4,130.29.
The U.S. dollar gathered steam on Friday despite earlier losses in Asia. The euro drifted back down to 1.0213 by the New York close Friday. The British pound dipped to 1.2169. The Japanese yen, which had risen above 132, was back down at 133.32. The Swiss franc eased to 0.9526.
The Canadian dollar slipped to 1.2805. The Australian dollar was weaker than its Asian highs, down at 0.6985. The New Zealand dollar softened to 0.6286.
On overseas equity markets, the Dax in Germany rose 1.52 percent. The Paris-based CAC 40 was up 1.72 percent. In London, the FTSE 100 advanced 1.06 percent.
In Hong Kong, the Hang Seng dived 466.17 points or 2.26 percent to 20,156.51.
China’s Shanghai Composite shed 29.34 points or 0.89 percent to 3,253.24.
In Japan, the Nikkei 225 slipped 13.84 points or 0.05 percent, to close Friday at 27,801.64.
The Australian All Ordinaries lifted 57.90 points or 0.81 percent to 7,173.80.
South Korea’s Kospi Composite climbed 16.23 points or 0.69 percent to 2,453.50.
The star performer in the Asia Pacific region Friday was New Zealand’s S&P/NZX 50, which shot up 164.46 points or 1.45 percent to 11,492.65.