US stocks up 1% on optimism for slow inflation pressures

US stock indices ended Friday in the green as markets assessed data on the Federal Reserve's preferred inflation gauge, which renewed investors' hopes that policymakers might shift toward further monetary easing.

The Dow Jones Industrial Average closed nearly 1.2% up at 42,840 points, reducing its weekly gains to 2.25%. The index extended its negative trend for the third week straight.

The S&P 500 index jumped 1.1% to 5,930 points, but declined 2% during the week, extending losses for the second consecutive week. Similarly, Nasdaq added about 1%, or 199 points, to end at 19,572. However, the index snapped a four-week rise, shedding 1.8% during the week.

As for European markets, the STOXX Europe 600 edged down 0.9% to 502.1 points, amid negative performance of all sectors. The index posted a weekly drop of 2.75%, ending in red for the second week.

Germany’s DAX index was down 0.45% to 19,884 points. CAC 40 index retreated 0.25% to 7,274 points. Likewise, FTSE index also lost 0.25% to 8,084 points, and the

The Nikkei index fell 0.3%, or 111 points, to 38,701. The broader Topix index also eased 0.45% to 2,701 points. Both indices shed 1.95% and 1.6%, respectively during the week.

In the oil market, Brent crude futures for February 2025 delivery rose by 0.1% or 6 cents to $72.94 a barrel, narrowing weekly losses to 2.1%.

Meanwhile, US WTI crude futures for February 2025 delivery increased by 0.1% or 8 cents to $69.46 a barrel but were down 1.9% for the week.

As for gold, February 2025 futures climbed by 1.4% or $37 to $2,645.1 per ounce but posted a weekly loss of 1.15%.

Economic data showed that the Personal Consumption Expenditures (PCE) Price Index rose by only 0.1% in November compared to October, with an annual increase of 2.4%, both figures below analysts' expectations.

Additionally, data from the US Commerce Department revealed that personal income rose by 0.3%, falling short of the 0.4% forecasts, while personal spending rose by 0.4% during the month, 0.1 percentage point below expectations.