US stocks opened mostly higher on Friday, driven by fresh economic data showing the Federal Reserve’s preferred inflation gauge slowing closer to its 2% target, while consumer spending growth remained steady.

Key Market Moves:

  • By 09:39 ET, the S&P 500 was up by 0.1%
  • The Dow Jones Industrial Average added 169 points or 0.4%
  • The Nasdaq Composite remained mostly unchanged

Inflation and Consumer Spending Insights:

  • US personal spending grew by 0.2% in August, slower than the anticipated 0.3%, marking the slowest increase in seven months.
  • Household income growth unexpectedly slowed to 0.2% from 0.3% in July.
  • The Personal Consumption Expenditures (PCE) price index rose 0.1% month-on-month, while the core PCE slightly increased to 2.7% annually.

European Stocks Surge:

  • European markets rallied to a record high, bolstered by China’s stimulus measures, boosting luxury and automobile stocks such as LVMH, Kering, and Burberry.

Oil Prices Remain Choppy:

  • Brent crude dipped 0.4% to $70.81 per barrel, while WTI crude dropped 0.3% as traders balanced potential supply increases from Libya and OPEC+.

Despite mixed economic signals, markets are reacting positively to cooling inflation and steady consumer spending, fueling optimism in the final quarter of 2024.