Dow rises 150 points Friday after tame inflation data, heads for 3rd winning week: Live updates

Stocks rose Friday with the Dow Jones Industrial Average and S&P 500 set to close out their third winning week in a row as a measure of inflation closely watched by the Federal Reserve came in at its lowest in nearly two years.

The Dow jumped 173 points, or 0.49%. The S&P 500 added 0.95%, and the Nasdaq Composite gained 1.89%.

All three major averages are on pace for weekly gains with the 30-stock average up by 0.6%. On Thursday, the Dow ended a 13-day win streak, a length not seen since 1987. The S&P is on track for a 1% gain, and the tech-heavy index is up 2%.

This week, investors cheered data showing falling inflation and stronger-than-expected earnings reports that supported the case the U.S. could avoid a recession.

On Friday, June data for the personal consumption expenditures price index continued to show easing inflation. The gauge showed PCE gained 0.2% month-over-month, in line with the 0.2% increase expected by economists polled by Dow Jones. Core PCE rose 4.1% from the year-ago period, lower than the anticipated 4.2%.

The data is of particular interest after the central bank raised interest rates earlier this week in a widely expected move. The Fed targets inflation at 2% annually.

“Today’s PCE, the Fed preferred measure of inflation, came in softer than expected to top off a full week chock full of economic data that all points to a higher probability of a soft landing,” wrote Gina Bolvin, president of Bolvin Wealth Management Group. “In the wake of stronger than expected GDP, and a better-than-expected earnings season, this could be the catalyst to send the market to new highs.”

Earnings season continued with Dow member Procter & Gamble shares gaining nearly 3%. The consumer goods company behind Tide and other brands beat analysts’ earnings and revenue expectations in its most recent quarter.

Intel jumped 5.5% as investors applauded a return to profitability, while Roku climbed 24% after beating Wall Street expectations on both the top and bottom lines.

On the other hand, Ford Motor shares fell 4.2% even though the automaker beat estimates and raised guidance. The company said its electric vehicle adoption was taking longer than expected due to higher costs.