Dow notches record high close after upbeat economic data
Federal Reserve will cut interest rates modestly in September.
U.S. consumer spending increased solidly in July, suggesting the economy remained strong while prices rose moderately.
"Investors are seeing another sign of being in a soft landing," said Cameron Dawson, chief investment officer at Newedge Wealth. «It's another one of those Goldilocks kind of reports really threading a needle right down the center. The market is really getting exactly what it wanted.»
A «just-right» Goldilocks economy has steady growth, but not too much that it fuels excessive inflation.
Amazon.com and Tesla each jumped over 3%.
Broadcom rallied nearly 4%, while Marvell Technology surged 9% after the chipmaker forecast quarterly results above estimates.
The personal consumption expenditures report came on Friday after Fed Chair Jerome Powell last week expressed support for an imminent policy adjustment.
Economic data next week includes the Labor Department's August jobs report, due on Friday.
Money markets suggest traders mostly expect the Fed to cut rates by 25 basis points in September, with odds of a 50 basis point cut dimming further after Friday's data, according to CME Group's FedWatch Tool.
Friday ended a tumultuous month on Wall Street after signs of a sudden moderation in the labor market in early August sparked fears of a U.S. recession. The influence of the Japanese yen carry trade worsened the rout.
Shares have rebounded since then, with the S&P 500 trading near record highs.
Ahead of Monday's U.S. stock market
