Stock market today: Dow, S&P 500, Nasdaq rise as PCE inflation data meets expectations

US shares picked up steam on Friday as investors exhaled a relative collective sigh of relief at an inflation report that was in line with forecast expectations even as they grappled with President Trump's new round of retaliatory tariffs and soured consumer mood.

The Dow Jones Industrial Average (^DJI) increased about 0.8%, driving gains, and the S&P 500 (^GSPC) rose 0.5%. The Nasdaq Composite (^IXIC), which is heavy in technology, increased 0.3% after three consecutive days of losses for the broader US gauges.Stocks recovered from a late-morning pullback as investors considered the latest data on inflation and the University of Michigan's consumer sentiment index, which discovered that Americans were more downbeat regarding the US economy in September than anticipated.

August's reading of the Personal Consumption Expenditures (PCE) inflation index, which includes the Fed-preferred "core" PCE measure of inflation, reported prices rising as expected. The "core" PCE price index was up 2.9% from year-earlier levels and 0.2% from July in August, both in line with what economists had predicted, even though inflation proved to remain sticky and considerably above the Fed's 2% target.

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Stock market today: Dow, S&P 500, Nasdaq advance as PCE inflation data comes in line with expectations

Amalya Dubrovsky, Karen Friar and Laura Bratton

Updated Sat, September 27, 2025 at 12:47 AM GMT+5:30 2 min read

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US stocks picked up speed on Friday as investors heaved a relative sigh of relief on an inflation report that met expectations while considering President Trump's new round of retaliatory tariffs and deteriorating consumer sentiment.

The Dow Jones Industrial Average (^DJI) increased about 0.8%, leading the gains, while the S&P 500 (^GSPC) added 0.5%. The Nasdaq Composite (^IXIC), which is heavy in technology, gained 0.3% after three consecutive days of declines for the major US benchmarks.

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Stocks recovered from a late-morning lull as investors weighed the latest inflation reading and the University of Michigan's consumer sentiment index, which determined that Americans were more bearish about the US economy than anticipated in September.

August's reading of the Federal Reserve-favorite "core" PCE inflation measure reported prices ticking up in line with forecasts. The "core" PCE price index increased 2.9% compared to a year ago and 0.2% compared to the previous month in August, both in tandem with what economists predicted, even as the stickiness of inflation left it well above the Fed's 2% goal.

In the meantime, investors are analyzing Trump's new threat to impose a 100% tariff on imports of name-brand drugs. The tax will be leveled against any drug company that is not currently constructing a factory in the US, President Trump announced in a social media posting late Thursday but with no other information. Drugmakers in Europe and Asia lost shares after the action.

Imports of heavy trucks and some types of furniture also have new higher tariffs, Trump added, with the new tariffs set to take effect on Oct. 1 — just a week from now.

The trade salvo creates new uncertainty for markets already dealing with worries over whether the AI boom will endure and a high chance of a US government shutdown. The S&P 500 looks to record its first weekly decline this month after a Wall Street slump halted a record-breaking rally.