U.S. stocks closed modestly higher on Friday, extending recent gains as a long-delayed inflation report showed price pressures remain elevated.
The Dow Jones Industrial Average rose 104.05 points, or 0.22 percent, to 47,954.99. The S and P 500 added 13.28 points, or 0.19 percent, to 6,870.4. The Nasdaq Composite Index increased by 72.99 points, or 0.31 percent, to close at 23,578.13.
Six of the 11 primary S and P 500 sectors ended lower, with utilities and energy leading the laggards by losing 0.98 percent and 0.43 percent, respectively. Meanwhile, communication services and technology led the gainers by rising 0.95 percent and 0.45 percent, respectively.
The latest Personal Consumption Expenditures (PCE) price index for September, released Friday by the U.S. Commerce Department after a reporting delay, showed headline inflation rising broadly as anticipated. The core PCE price index, excluding food and energy, advanced 2.8 percent year on year.
Separately, the University of Michigan's preliminary December consumer sentiment survey posted its first increase in five months.
U.S. labor market indicators continued to paint a picture of gradual cooling. A report from Challenger, Gray and Christmas on Thursday showed that U.S. companies announced 71,321 job cuts in November, the highest total for the month since 2022.
Market-based odds of a 25-basis-point rate cut at the Federal Reserve's Dec. 10 meeting stood at around 87 percent, according to the CME FedWatch Tool.
In corporate developments, Netflix shares dipped 2.89 percent after the streaming video giant agreed to acquire Warner Bros. Discovery's film and television studios along with its streaming operations in a transaction valued at approximately 72 billion U.S. dollars. Shares of Warner Bros. Discovery on Friday rose 6.28 percent on the news.
U.S. stocks edge higher after fresh inflation data
Officials and business leaders from both China and the United States gathered in Berkeley, California on Friday to discuss the future of trade and investment between China and the San Francisco Bay Area, with many hoping to overcome the recent strain brought by the Trump administration's tariffs.
The China Council for the Promotion of International Trade hosted a business breakfast exchange meeting on Friday morning, with the council's chairman Ren Hongbin sending out a clear message of the vast economic potential which is there to be tapped into.
"The Chinese economy is very much innovation driven. And the strategic emerging industries, such as new energy, new materials, low carbon, aerospace, bio-pharmacy and the low-altitude economy, will generate a trillion-yuan level or even larger markets. So, I think that will provide enormous opportunities and room for China and U.S. companies to cooperate," said Ren.
He further stressed the China International Supply Chain Expo in Beijing as an example of an event where San Francisco Bay Area companies like NVIDIA and Apple were active participants and direct beneficiaries.
Meanwhile, Chinese Consul General in San Francisco Zhang Jianmin said that against the backdrop of a global economic slowdown, greater cooperation in the innovation sector is now more important than ever.
"The [San Francisco] Bay Area is home to many of the world's top tech companies and offers a sound innovation ecosystem. China has a super big market, rich application scenarios and a complete industrial supporting system. There exists tremendous potential for both sides to have more mutually beneficial cooperation by tapping into their complementary strengths," said Zhang.
Attendees did voice concerns over how the Trump administration's tariffs are impacting business.
With China accounting for nearly 30 percent of the Port of Oakland's total trade volume, the port's executive director Kristi McKenney stressed the need for greater stability and certainty.
"The tariffs in many cases were never actually implemented or were changed before they were implemented. So those linkages are a bit more challenging. I think the bigger issue will be certainty in the economy. And if there's lack of certainty, if we see economic difficulty, then you're going to see job losses," said McKenney.
Oakland's Mayor Barbara Lee said that it is very much business as usual, despite the recent difficulties.
"While we understand the challenges of tariffs, the exports and imports are still continuing, and our port is still a large containerized port doing business with China. And we're going to strengthen that relationship. We may have our differences on issues, on policies, but we here in Oakland understand that we're a global city and we believe the trade brings friendships, brings understanding, and also brings economic benefits to both countries," she said.
Chinese, US officials, business leaders meet in California to deepen mutual understanding
