Stock Market Today: Dow rallies to notch third-weekly win as tech reigns supreme
Investing.com — The Dow closed higher Friday, notching a third weekly win as investors piled into big tech and chip stocks following a fall in Treasury yields as further signs of slowing inflation stoked fresh hopes that the Federal Reserve likely delivered its final rate earlier this week.
The Dow Jones Industrial Average rose 0.5%, or 176 points, Nasdaq was up 1.9%, and the S&P 500 rose 1%.
Big tech including Apple Inc (NASDAQ:AAPL), Meta Platforms Inc (NASDAQ:META), Alphabet Inc Class A (NASDAQ:GOOGL), and Microsoft Corporation (NASDAQ:MSFT) racked up gains as Treasury yields slipped after the closely watched Fed inflation measure slowed more than expected.
The personal consumption expenditures slowed to a 0.2% pace in June from 0.1% a month earlier, taking the annual pace to 3% for the month, markedly slower than the 3.8% in prior month.
“The slowing trends in inflation and wages, and the slowdown in spending we expect, support our expectation that this week's rate hike was the last,” Morgan Stanley.
The 2-year Treasury yield and 10-year Treasury yield slipped as bets on Fed pause strengthened.
An Intel Corporation (NASDAQ:INTC)-led rally in chip stocks also pushed broader tech higher as the chipmaker reported upbeat guidance and second-quarter surprise profit following better-than-expected revenue.
Intel’s ongoing improvement in margins is expected to continue into 4Q, Deutsche Bank says, as a “wide array of headwinds abating tailwinds emerging” including revenue scale, cost cuts, and the selling PRQ’s products, which refers to early product stock of upcoming launches.
Qualcomm Incorporated (NASDAQ:QCOM), ON Semiconductor Corporation (NASDAQ:ON), and KLA Corporation (NASDAQ:KLAC) were also among the biggest chip
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