Stocks rebounded into the close on Friday to wrap up a very volatile week as investors bought the dip in technology stocks. The Dow Jones Industrial Average rose over 560 points, posting its best day since early December after being down more than 350 points earlier in the session. The S&P 500 also climbed 2.4% higher, marking its best session since June 2020, while the Nasdaq rallied over 3%.
Personal income rose at a 0.3% month-on-month rate in December, the U.S. Bureau of Economic Analysis reported Friday, missing estimates for a 0.5% rise. In November, income rose at a 0.5% rate.
Personal spending fell 0.6% during the month, marking the first drop since Feb 2021 after November's gain of 0.4%.
For the week, Dow finished up 1.3% and the S&P 500 added 0.8%, both breaking a three-week losing streak. The Nasdaq, however, closed the week near a flatline and is about 15% from its record high.
Personal consumption expenditures rose at fastest rate since 1982:
The Personal Consumption Expenditures (PCE) index rose 5.8% in December year-over-year, according to a key inflation report from the U.S. Bureau of Economic Analysis published Friday, accelerating from November's 5.7% annual gain. Month-over-month, PCE rose 0.4% in December, slowing from November's 0.6% gain.
Here's how the market settled to close out the week:
Excluding food and energy prices, core PCE rose more-than-expected at a 4.9% year-over-year gain in December, accelerating from November's gain of 4.7%.
S&P 500 Index
Dow Jones Industrial Average
Here's how market benchmarks started trading soon after opening bell:
Nasdaq Composite Index
S&P 500 Index: +0.24% or +10.47 points to 4,336.98
Consumer sentiment falls to lowest level since 2011:
Dow Jones Industrial Average: +0.06% or +20.60 points to 34,181.38
Nasdaq Composite Index: +0.43% or +57.26 points to 13,411.39
Consumer sentiment fell to its lowest level in a decade by the end of January, as consumer became increasingly concerned over rising prices, the pandemic and fresh geopolitical risks.
The University of Michigan's final January consumer sentiment index reading dropped to 67.2, representing the lowest level since November 2011.
"Overall confidence in government economic policies is at its lowest level since 2014, and the major geopolitical risks may add to the pandemic active confrontations with other countries," said Richard Curtin, chief economist for the Surveys of Consumers, in a press statement.
"Although their primary concern is rising inflation and falling real incomes, consumers may misinterpret the Fed's policy moves to slow the economy as part of the problem rather than part of the solutions," he add. "The danger is that consumers may overreact to these tiny nudges, especially given the uncertainties about the coronavirus and other heightened geopolitical risks."
Personal income, spending was lackluster in December:
U.S. personal income rose at a less-than-expected pace in December, posting the smallest gain since September.
Personal income rose at a 0.3% month-on-month rate in December, the U.S. Bureau of Economic Analysis reported Friday, missing estimates for a 0.5% rise. In November, income rose at a 0.5% rate.
Personal spending fell 0.6% during the month, marking the first drop since Feb 2021 after November's gain of 0.4%.
Personal consumption expenditures rose at fastest rate since 1982:
The Personal Consumption Expenditures (PCE) index rose 5.8% in December year-over-year, according to a key inflation report from the U.S. Bureau of Economic Analysis published Friday, accelerating from November's 5.7% annual gain. Month-over-month, PCE rose 0.4% in December, slowing from November's 0.6% gain.
Excluding food and energy prices, core PCE rose more-than-expected at a 4.9% year-over-year gain in December, accelerating from November's gain of 4.7%.
Here's how market benchmarks started trading soon after opening bell:
S&P 500 Index: +0.24% or +10.47 points to 4,336.98
Dow Jones Industrial Average: +0.06% or +20.60 points to 34,181.38
Nasdaq Composite Index: +0.43% or +57.26 points to 13,411.39
