A selloff in bonds has sent longer-term Treasury yields soaring and weighed on the stock market since June.
The picture brightened a bit Friday when promising inflation data raised hopes that the Fed could stop raising rates. Some of the big tech shares that have lagged behind lately charged ahead of the market.
The PCE price index—the Federal Reserve’s preferred gauge of consumer inflation—rose 0.4% in August. Core prices, which exclude volatile food and energy prices, edged up 0.1%, the weakest monthly reading since 2020.
Elsewhere in markets, the dollar is on track for its best quarter in a year. The WSJ Dollar Index is up 2.8%, lifted by the rising yields.
Stocks were mostly lower. The S&P and Dow industrials ticked down, while the Nasdaq edged slightly higher.
Nike’s shares jumped after the sportswear company’s quarterly profit topped Wall Street’s expectations.
Treasury notes recovered some ground. The benchmark 10-year Treasury yield extended its retreat into a second day, slipping to 4.571%, from 4.596% Thursday.
European stocks rallied. The pan-continental Stoxx Europe 600 added 0.4%. Data out Friday showed eurozone inflation cooled more than expected September.
It’s been six months since Wall Street Journal reporter Evan Gershkovich was detained in Russia. Follow the latest updates here.
Read More: Dow Slips After Inflation Data; Nike Stock in Focus