The US dollar and US government bond yields jumped on Friday as the Fed's preferred inflation gauge came in lower than analysts expected, limiting the upside in commodity prices.
At the end of the trading session on December 20, the Dow Jones index increased by 1,181 points to 42,840.26 points. The S&P 500 index increased by 1,091 points to 5,930.85 points, while the Nasdaq Composite also recorded an increase of 1,031 points to 19,572.60 points.
Despite Friday's gains, all three major indexes posted weekly losses. The Dow Jones Industrial Average fell nearly 2.31 percent, marking its third consecutive weekly decline. The S&P 500 fell nearly 2.1 percent for the week, while the Nasdaq Composite fell 1.81 percent.
In the same session, Brent crude oil price increased by 0.08% to 72.94 USD/barrel, while WTI crude oil increased by 0.12% to 69.46 USD/barrel. However, both types of oil decreased by 2.5% for the week.
Spot gold rose 1.1% to $2,623.36 an ounce, while gold futures rose 1.4% to $2,643.2 an ounce. The weakening of the US dollar, down 0.4% from a two-year peak, along with a decline in US bond yields from their highest in more than six months, supported the gold price rally, making the precious metal more attractive to international investors.
On the morning of December 23, the USD index increased to 107.53 points, while the US Treasury bond yield exceeded 4.53%.
The personal consumption expenditures (PCE) price index, a measure of inflation favored by the Federal Reserve, rose 2.41% in November from a year earlier. The figure was slightly lower than analysts had expected, somewhat alleviating concerns from earlier in the week when the Fed said it would slow the pace of interest rate cuts due to inflationary pressures. Stay tuned. HVA to update and grasp the fastest information about the financial market every day.
