June 2, 2023

Dubai Week

Complete Dubai News World

Declining consumer spending at the end of a tumultuous month supported Wall Street

Acceptable monthly profit… and Nasdaq profit reaching 5%

Wall Street rose on Friday, with the Nasdaq index posting its biggest quarterly percentage gain since June 2020 as signs of easing inflation raised hopes that the U.S. Federal Reserve will soon end its aggressive campaign to raise interest rates. The S&P 500 index posted a second-quarter gain led by the technology sector, which rose more than 20 percent.

On Friday, the S&P 500 rose 58.07 points, or 1.43 percent, to close at 4,108.76. The Nasdaq Composite rose 208.44 points, or 1.74 percent, to 12,221.91. The Dow Jones industrial average rose 408.66 points, or 1.24 percent, to 33,267.69.

  • Consumer spending

Consumer spending in the U.S. rose modestly in February, up from the previous month, and despite signs of slowing inflation, the rate remains high, which could prompt the U.S. Federal Reserve to raise interest rates again this year.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.2% last month, the Commerce Department said Friday. January data was revised to show a 2% increase instead of 1.8% as previously reported.

Economists polled by Reuters had expected consumer spending to rise 0.3%. Consumer spending also fell due to lower income growth.

Consumer spending is poised to record the fastest growth in the first quarter, with the October-December quarter rising at the slowest pace in two-and-a-half years, with January’s data revised up from last month’s increase, helping the expansion. economy.

The personal consumption expenditure price index rose 0.3% last month, after rising 0.6% in January. The index rose 5% in the twelve months to February, after posting a 5.3% increase in January.

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The personal consumption expenditure index, which excludes volatile food and energy prices, rose 0.3% after rising 0.5% in January.

After rising 4.7% in January, it rose 4.6% year-on-year in February. The core indicator is the central bank’s preferred measure of inflation, which is the 2% target.