US Stocks Rebound on Apple Earnings, Inflation Data
US stocks surged on Friday, buoyed by strong earnings from Apple and a favorable inflation report.
Tech Sector Leads Gains
The technology-heavy Nasdaq Composite led the charge, climbing over 1%. Apple's shares jumped after the tech giant exceeded expectations with its first-quarter results.
Broad Market Gains
The S&P 500 also rose, gaining nearly 0.7%, while the Dow Jones Industrial Average advanced modestly by 0.1%. All three major indices extended their gains from Thursday's trading.
Inflation Gauge Meets Forecasts
The Federal Reserve's preferred inflation measure, the Core Personal Consumption Expenditures (PCE) index, increased by 2.8% year-over-year in December, matching expectations. This data eased concerns about rising inflation and supported the market's optimism.
Fed Rate Cut Bets Delayed
Despite the inflation report, market participants remain cautious about a near-term interest rate cut by the Fed. CME FedWatch data indicates that traders expect the first rate cut not to occur until June at the earliest.
Tariff Deadline Approaches
Investors are closely monitoring the looming February 1 deadline for tariffs on imports from Canada and Mexico. President Trump has threatened to impose tariffs, raising concerns about their impact on economic growth.
Apple's AI Strategy
Apple's emphasis on artificial intelligence (AI) continues to attract investor attention. Despite a decline in iPhone sales, the company's adoption of AI features has been well-received by the market.
Deckers Stock Tumbles
Deckers Outdoor stock plunged after the shoe brand reported weaker sales growth for fiscal year 2025. Investors expressed concern about the slowdown compared to previous quarters.
Energy Sector Reports
Oil and gas companies also released earnings reports on Friday. Chevron announced plans to increase oil production in the Permian Basin by 10% this year.