Stocks Rise as Investors Look Past Inflation and Tariffs

U.S. stocks gained ground on Friday, breaking a three-day losing streak, as investors shrugged off persistent inflation pressures and a fresh round of tariffs announced by President Trump.

The S&P 500 rose 0.6%, the Dow Jones Industrial Average advanced 0.7% (about 300 points), and the Nasdaq Composite added 0.4%.

The personal-consumption expenditures (PCE) price index—the Federal Reserve’s preferred inflation gauge—showed inflation holding above the central bank’s 2% target last month. Still, the results matched expectations, easing fears of accelerating price pressures.

Markets continue to price in two more Fed rate cuts, expected in October and December, following last week’s 0.25-point reduction in the benchmark borrowing rate.