U.S. stocks rallied on Friday after a cooler-than-expected inflation report and dovish comments from Federal Reserve officials, though all major indexes closed lower for the week. The PCE inflation index rose 2.4% annually in November, slightly below estimates, and consumer spending showed resilience. Traders increased expectations for 2025 Fed rate cuts, anticipating the first in March. The Dow, S&P 500, and Nasdaq posted daily gains of 1.18%, 1.09%, and 1.03%, respectively, but fell 2.25%, 1.99%, and 1.78% for the week. Friday’s rally was broad-based, with all 11 S&P sectors advancing, led by real estate. However, concerns over fiscal policy and a potential government shutdown persist, while “triple witching” boosted trading activity, with volume reaching 21.58 billion shares.
