US equities ended Friday on a positive note with major averages reaching new highs for the session on the last trading day of August. The Nasdaq surged 197.19 points or 1.1 percent to 17,713.62, the S&P 500 jumped 56.44 points or 1.0 percent to 5,648.40 and the Dow climbed 228.03 points or 0.6 percent to 41,563.08. Meanwhile, the major averages turned in a mixed performance for the week. The Nasdaq slid by 0.9 percent, but the S&P 500 edged up by 0.2 percent and Dow advanced by 0.9 percent.
The Commerce Department report showed consumer prices increased in line with estimates in the month of July, while the annual rate of price growth was unexpectedly flat. The report said the personal consumption expenditures (PCE) price index rose by 0.2 percent in July after inching up by 0.1 percent in June. The modest increase matched expectations. The core PCE price index, which excludes food and energy prices, also crept up by 0.2 percent in July. This data bolstered hopes for Fed rate cuts later this year, as the economy showed resilience while keeping the door open for potential easing. The monthly jobs report is likely to be in focus this week, while reports on manufacturing and service sector activity may also attract attention along with the Fed's Beige Book.
US treasuries came under pressure with the yield on the benchmark ten-year note, which moves opposite of its price, climbed 4.4 basis points to 3.9 percent. Meanwhile, the dollar index held around 101.7 on Monday after rising for three straight sessions, as investors dialed back bets for aggressive Federal Reserve rate cuts in light of the latest inflation reading, while looking forward to a key US jobs report later this week.
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