Closing: U.S. stocks closed higher on Friday as the market focused on inflation data and the prospect of the Federal Reserve cutting interest rates this week.

Check the latest market situation In the early morning of the 13th, Beijing time, U.S. stocks closed higher on Friday. All three major stock indexes recorded gains this week.
The market led the expansion of rising sectors. Home Depot and Caterpillar participated in pushing the Dow Jones Industrial Average higher.
The U.S. PPI increased by 0.2% month-on-month in June, slightly higher than market expectations.
Investors are paying attention to financial industry earnings reports and recent signs of sector rotation.
The Dow rose 247.15 points, or 0.62%, to 40,000.90 points; the Nasdaq rose 115.04 points, or 0.63%, to 18,398.45 points; the S&P 500 rose 30.81 points, or 0.55%, to 5,615.35 points.
All three major U.S. stock indexes recorded gains this week. The Dow rose 1.59% for the week. The Nasdaq rose 0.63%. The S&P 500 rose 0.55%.
In intraday trading on Friday, the Dow Jones Industrial Average rose to a maximum of 40,257.24 points and the S&P 500 Index rose to a maximum of 5,655.56 points. Both hit new intraday record highs.
A number of financial giants released financial reports on Friday.
Wells Fargo said net interest income, a key measure of a bank\’s loan profitability, fell short of expectations in the second quarter.
The bank also continues to forecast net interest income to fall from 7% to 9% this year.
JPMorgan Chase\’s second-quarter revenue topped Wall Street expectations due to higher investment banking fees.
Investors are paying close attention to the emerging signs of market rotation.
Big technology, which has led the market higher this year, suffered a sell-off on Thursday. Tesla fell 8.4% on the day. Nvidia closed down 5.6%. Meta Platforms closed down 4.1%.
Investors pulled out of technology stocks on Thursday and turned to cheaper cyclical stocks including real estate and banks. The reason was that the Consumer Price Index (CPI) report released that day showed that inflation has cooled significantly, causing traders to flock to real estate and other stocks. Areas of the market that could benefit from a rate cut by the Federal Reserve.
At the same time, small-cap stocks are in hot demand. In fact, the Russell 2000 small-cap index rose about 3.6% on Thursday.
The index closed 1.24% higher on Friday.
Warren Pies, strategist and co-founder of 3Fourteen Research, said that the rotation of market sectors on Thursday represents what will happen in the second half of the year.
Pies added that the upcoming corporate earnings season and the backdrop of credit expansion will continue to drive the market through the end of the year.
He said: In the past few years, from many aspects, the U.S. economy has been quite strong. But some aspects are indeed restricted by the Federal Reserve\’s interest rate policy.
He noted that as central bank policymakers cut interest rates, some corners of the economy that have been dormant – such as used home sales and new car sales – will revive.
On the economic data front on Friday, U.S. producer prices (PPI) rose slightly higher than expected in June as rising profit margins for service providers offset falling commodity costs.
According to data released by the U.S. Bureau of Labor Statistics on Friday, final demand PPI rose 0.2% month-on-month in June and 2.6% year-on-year.
The wholesale inflation report comes after the more closely watched Consumer Price Index (CPI) released by the U.S. Labor Department on Thursday showed that consumer prices fell for the first time since the outbreak of the new crown epidemic. Start cutting interest rates.
Lower-than-expected inflation data released on Thursday reinforced bets that the Federal Reserve will cut interest rates in September.
The market expects an interest rate cut of 0.25 percentage points in September. The probability a month ago was only more than 50%, and there will be at least two interest rate cuts before the end of the year.
Data released by the U.S. Department of Labor on Thursday showed that the CPI in June rose 3% year-on-year. The increase narrowed 0.3 percentage points from May. It unexpectedly dropped 0.1% month-on-month. The growth rate slowed down 0.1 percentage points from the previous month.
After excluding volatile food and energy prices, the core CPI in June rose 0.1% month-on-month, narrowing 0.1 percentage points from the month-on-month increase in May; the core CPI in June rose 3.3% year-on-year, falling back to the lowest level since April 2021.
Chicago Fed President Goolsby called the CPI data excellent. He said the report provided the evidence he had been waiting for. It convinced him that the Fed was moving towards its 2% goal.
James Rossiter, head of global macro strategy at TD Securities, said: The CPI data is good news. Obviously stocks welcome it to some extent. But we see other indicators that the U.S. economy may be slowing down.
He said that the stock market in particular must take into account the loose policy that may be brought about by the Federal Reserve\’s interest rate cut in September. The economic growth outlook is clearly turning. For some stock industries, this will be more worrying.
Focus stocks Citigroup said that the bank\’s costs this year may fall at the high end of the guidance range previously provided.
The bank has faced a series of regulatory penalties in recent months.
Citigroup cut expenses by 2% in the second quarter to $13.35 billion, slightly better than analysts\’ average estimate of $13.4 billion.
However, the New York-based bank said on Friday that spending this year would likely be at the high end of the $53.5 billion to $53.8 billion range it had previously provided.
The bank recorded costs of US$56.4 billion in 2023.
Wells Fargo\’s second-quarter revenue was US$20.69 billion, a year-on-year increase of 1%, which was better than market expectations; net profit was US$4.910 billion, a year-on-year decrease of 1%; earnings per share was US$1.33, which was better than market expectations of US$1.29.
Net interest income was US$11.923 billion, down 9% year-on-year. Less than expected.
Provisions for the second quarter were US$1.24 billion. Although this was an increase from the first three months of this year, it was still better than analysts\’ expectations of US$1.28 billion.
After reporting higher-than-expected second-quarter spending, Wells Fargo warned it would not be able to cut costs at the pace previously expected.
Data show that second-quarter spending increased 2% to $13.3 billion.
By comparison, analysts had expected growth of 0.2%.
JPMorgan Chase\’s second-quarter revenue reached US$50.2 billion. This figure not only exceeded market expectations of US$42 billion. It was also higher than the US$41.307 billion in the same period last year.
In investment banking, JPMorgan Chase achieved revenue of $2.46 billion, exceeding market expectations of $2.13 billion.
In addition, JPMorgan Chase’s total loans in the second fiscal quarter were US$1.32 trillion, in line with market expectations.
Net interest income was $22.86 billion. slightly higher than market expectations of $22.82 billion.
AT&T shares fell.
According to reports, the call data of most of the company\’s users was hacked on a large scale. The hackers stole six months of call and text message data.
NVIDIA is in the spotlight. The stock closed sharply lower on Thursday.
The European Commission, the EU\’s antitrust regulator, ruled on Friday that Musk\’s social platform X violated the EU\’s online content rules.
The findings could result in X being fined and making significant changes to the way it operates.
Prior to this, the European Commission conducted a seven-month investigation into X under the Digital Services Act (DSA).
According to the requirements of the European Union\’s Digital Services Act, large online platforms and search engines must take more measures to address illegal content and public safety risks.
In addition to the X platform, Meta Platforms is also facing a similar investigation by the European Union.
An investigation by India\’s antitrust agency, Competition Commission of India, found that Apple used its dominant position in the iOS operating system app store market to engage in abusive acts and practices.
Since 2021, the Competition Commission of India has been investigating Apple for possible abuse of its dominant position in the app market by forcing developers to use its proprietary in-app purchase system.
But Apple has always denied wrongdoing, saying it is a small company in India, where phones using Google\’s Android system dominate.
The investigation arm of the Competition Commission of India said in the 142-page report that Apple has significant influence on how digital products and services reach consumers, especially through its iOS platform and App Store.
Currently, this report has not been made public.
Bank of Montreal raised its target price on Microsoft from $465 to $500.
Google is about to launch the Pixel 9 series of mobile phones next month. Today, the source Dealabs revealed the price and color matching information of this mobile phone in the French market.
Amazon founder Bezos recently sold more Amazon stock.
Bezos sold 3,085,116 shares on Friday at an average price of $200.07 and 1,171,794 shares on Monday at $200.33 per share. 57,199 shares were sold at an average price of $201.05 per share.
The sale complies with the Rule 10b5-1 trading plan adopted by Bezos on March 2.
The rule provides a way for company insiders to trade a company\’s stock for a predetermined period of time. Provided the insiders can prove that they were unaware of any material non-public information when formulating the pre-existing plan.
The total value of shares sold by Bezos over the past two trading days was $863.49 million.
Teck Resources completed the sale of its coal business to Glencore and announced a dividend.
Immutep’s new cancer therapy performs well.
Ericsson\’s second-quarter sales and adjusted EBIT both beat expectations.
In other markets, the price of West Texas Intermediate crude oil (WTI) futures for August delivery on the New York Mercantile Exchange on Friday closed down $0.41, or 0.50%, to close at $82.21 per barrel.
Calculated based on the most active contract, WTI crude oil fell 1.14% this week.
The price of Brent crude oil futures for September delivery on the European Intercontinental Exchange fell 37 cents, or 0.43%, to close at $85.03 per barrel.
Brent crude oil fell 1.74% this week.