Wall Street Ends Up as Investors Weigh Inflation Data

U.S. stocks ended higher Friday after mostly in-line U.S. inflation data, but indexes posted losses for the week.

The Personal Consumption Expenditures (PCE) Price Index increased 0.3% in August, matching estimates of economists polled by Reuters. In the 12 months through August, PCE inflation increased 2.7% after climbing 2.6% in July. Solid U.S. consumer spending in August underscored the economy's resilience.

Market participants have been concerned about economic data this week, weighing signs of a stronger economy against expectations for more interest rate cuts from the Federal Reserve. The Fed last week cut rates for the first time since December.

Investors are questioning what the Fed's path is going to be from here, and are preparing for quarter-end, said Bruce Zaro, managing director at Granite Wealth Management in Plymouth, Massachusetts.

"To me, it's typical of quarter-end window dressing... You're going to have some volatility during this period and in the subsequent weeks because you have earnings coming," he said.

Also, shares of truck maker Paccar, which makes most of its trucks for the U.S. market domestically, rose, a day after President Donald Trump unveiled fresh import tariffs, including on heavy-duty trucks, branded pharmaceutical products, kitchen cabinets and bathroom vanities along with upholstered furniture. Drugmaker Eli Lilly also gained.

Electronic Arts shares jumped after reports that the company was in advanced talks to go private.

According to preliminary data, the S&P 500 gained 38.82 points, or 0.59%, to end at 6,643.68 points, while the Nasdaq Composite gained 97.74 points, or 0.44%, to 22,482.44. The Dow Jones Industrial Average rose 303.56 points, or 0.66%, to 46,250.88.

Richmond Fed Bank President Thomas Barkin, in an interview with Bloomberg Television, said he had very low confidence in inflation forecasts, as tariffs continue to impact the economy.

Investors also are bracing for a potential government shutdown, which could disrupt data releases and add uncertainty to the markets.

Costco Wholesale fell after the company reported quarterly results.