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The Dow Jones Industrial Average (DJIA) made slim gains on Friday, climbing another 150 points and ending a moderately bullish week near the 48,000 handle. US Personal Consumption Expenditures Price Index (PCE) data, despite being from September, helped bolster market confidence that the Federal Reserve (Fed) will be delivering a third straight interest rate cut on December 10.

The Standard & Poor’s 500 (SP500) also climbed around 0.3% on Friday, putting the broad-market index on pace to challenge all-time highs.

PCE inflation cools slightly, bolsters Fed rate cut hopes

Core PCE inflation ticked down to 2.8% YoY in September, while the monthly figure held steady at 0.2% from August. The figures are well backdated as federal agencies struggle to play catch-up following the longest US government shutdown in history, but any sign of not-runaway inflation is being taken in stride by markets that are aching for a third straight rate cut before the end of the year.

The University of Michigan (UoM) Consumer Sentiment and Expectations Indexes for December both rose faster than expected. UoM 1-year and 5-year Consumer Inflation Expectations also ticked lower.

Coming up next week: Fed threepeat?

Market momentum will likely flatten heading into next week’s Fed rate call, slated for Wednesday. December’s Fed rate meeting will also include an update to the Summary of Economic Projections (SEP), which includes the dot plot of interest rate expectations from Fed policymakers, a key tool used by markets to gauge Fed appetite for interest rate moves looking forward.

Dow Jones daily chart

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