Wall Street today: US Stocks surge on in-line PCE inflation data, Apple gains 2.9%

Wall Street stocks surged on Friday, led by gains in Apple following its upbeat results and on an in-line Federal Reserve-preferred inflation.

The Personal Consumption Expenditures (PCE) price index rose 2.6 per cent in December, up from 2.4 per cent in November but in line with analyst expectations. 

At 09:40 a.m. ET, the Dow Jones Industrial Average rose 115.92 points, or 0.26 per cent, to 44,998.05, the S&P 500 gained 25.98 points, or 0.43 per cent, to 6,097.15, and the Nasdaq Composite gained 160.80 points, or 0.82 per cent, to 19,842.55.

At the opening bell, the Dow Jones Industrial Average rose 172.2 points, or 0.38 per cent, to 45054.36. The S&P 500 rose 25.6 points, or 0.42 per cent, to 6096.79​, while the Nasdaq Composite rose 150.6 points, or 0.77 per cent, to 19832.333.

The latest PCE data boosts bets for the Fed to follow its interest rate cutting path this year.

Fed Governor Michelle Bowman said she still expects declining inflation to allow further interest-rate cuts this year, but felt rising wages, buoyant financial markets, geopolitical risks and upcoming Trump administration policies could slow the process and keep price pressures elevated.

On Saturday, investors will closely watch whether US President Donald Trump will follow February 1 deadline to impose tariffs on Canada, Mexico and China.

Gainers and losers

Apple shares rose 2.9 per cent after the iPhone maker reported stronger quarterly profit on Thursday.

Chevron stock fell 2.8 per cent after reporting fourth quarter earnings below estimates.

Among other companies reporting results, Colgate-Palmolive fell 5.2 per cent, ExxonMobil dropped 2.3 per cent and Visa advanced 0.4 per cent.

The yield on the 10-year Treasury edged down to 4.51% from 4.52% late on Thursday.

Bullion

Gold prices rose to a record high on Friday, with investors rushing to safe havens after US President Donald Trump reiterated threats to impose tariffs on Mexico and Canada.

Bullion topped $2,800 for the first time on Friday.

Spot gold added 0.4 per cent to $2,804.86an ounce as of 1:14 pm in London.

Crude oil

Oil prices were steady on Friday as markets waited to see if Trump will follow through on his tariffs threat.

Brent crude futures for March, which expire on Friday, were down 9 cents at $76.78 a barrel by 1420 GMT. US West Texas Intermediate crude declined 2 cents to $72.71.