US Stocks Recover After Inflation Data Eases Rate Concerns

Major indexes rebound on Friday, softening a tough week after the Federal Reserve's cautious stance on 2025 interest rate cuts.

The Dow Jones, S&P 500, and Nasdaq rose over 1% on Friday, buoyed by cooler-than-expected PCE inflation data, which suggested easing price pressures.
Despite the rally, all three major indexes posted weekly losses, with the Dow down 2.3%, the S&P 500 falling 2%, and the Nasdaq declining 1.8%.
The Federal Reserve cut rates by 25 basis points this week but reduced its 2025 rate cut projections, unsettling markets earlier in the week.
Investors remain cautious about potential economic impacts from tariff threats by President-elect Donald Trump and a possible government shutdown.
Sectors like real estate and technology led Friday's gains, while stocks like Tesla and Novo Nordisk faced notable declines due to company-specific challenges.