The US stock market edged higher on Friday after wholesale prices were unchanged in September, indicating subdued inflation in the US economy. In addition, JP Morgan kicked off the earnings season on Friday. The S&P 500 rose with gains of over 0.05%.
The Dow Jones Industrial Average gained 0.25% or 74.24 points, whereas the tech-heavy Nasdaq Composite fell 0.31%, or 56.25 points.
This comes after the S&P 500 and Dow Jones pulled back from their record highs on Thursday. However, the major averages will post a winning weak for the fifth consecutive time.
S&P 500 is seeing the longest winning run since May as it prepares to report for a fifth straight week of gains. Dow Jones gained 0.2%, whereas Nasdaq was the outperformer with 0.8% gain.
The September PPI report largely met economists' expectations, with the headline figure remaining unchanged for the month—slightly below forecasts of a 0.1% increase—and showing a 1.8% rise compared to the previous year.
“Overall, this is a relatively benign update on producer prices and one that we doubt will materially shift policy expectations,” Ian Lyngen at BMO Capital Markets told Bloomberg.
“From here, the market will be watching the University of Michigan Sentiment survey, although we doubt this will have a material impact on the tone in US rates into the long weekend,” Lyngen added.
In the early minutes of trading, only three of the 11 sectoral indices were trading in red, with the discretionary sector leading the surge, while financial and industrial were among the indices edging higher.
Among major companies, JPMorgan Chase & Co., Goldman Sachs Group Inc. BlackRock Inc. and Uber Technologies logged gains, whereas Tesla Inc. and Vistra Corp. slipped in early trade.
As the US market opened, spot gold rose 0.7% to $2,649.07 an ounce. Crude oil prices rose, with Brent trading 0.63% lower at $78.90 per barrel.
The Bloomberg Dollar Index was little changed, with the British Pound being flat at $1.3064, while the Japanese yen was down 0.4%.
Bitcoin, the largest traded cryptocurrency, rose 3.1% to $61,580.67.
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