US Stock Market Today: S&P 500, Dow Jones Recover As Fresh Inflation Data Fuels Fed Rate Cut Bets

S&P 500, Dow Jones Industrial Average and Nasdaq Composite edged higher in early trade on Friday, following a three-day decline, after the release of personal consumption expenditure price index.

Minutes into the trade, the Dow Jones rose 187.72 points or 0.41%, S&P 500 was up 0.40%, and Nasdaq gained 0.32%.

The Federal Reserve's preferred inflation measure, showed that the core inflation ran at 2.9%, while it was at 0.2% on a monthly basis. However, this excludes the food and energy costs.

This reading was in line with estimates, which suggests inflation is stable and the Fed may move ahead with its projected twin rate cuts in the year ahead.

The Wall Street action on Friday also comes in the aftermath of Trump announcing a 100% import tariff, starting Oct. 1, on branded or patented drugs unless a company has a manufacturing plant in the US.

Notably, the US stock market had fell for a third straight day on Thursday, weighed down by losses in software giant Oracle and other artificial intelligence stocks, amid doubts over the strength of the AI trade. The S&P 500 ended 0.9% lower, the tech-heavy Nasdaq Composite had slipped about 1.1%, and the Dow Jones Industrial Average lost 0.8%.

(This is a developing story)