Inflation Data Bolsters Wall Street Amid Tariff Turbulence
U.S. inflation data steadied Wall Street, with significant gains reported Friday as Treasury yields remained stable, and gold prices rose. Consumer spending exceeded expectations, while inflation matched forecasts at 2.7%. However, new tariffs on pharmaceuticals by President Trump stirred trade war concerns, impacting economic and inflation forecasts.
The latest U.S. inflation data buoyed Wall Street on Friday, driving notable gains, while Treasury yields held steady, and gold firmed expecting further cuts in interest rates by the Federal Reserve.
Consumer spending in August slightly outstripped expectations as inflation inched up to 2.7% from July's 2.6%, aligning with economist predictions. However, new White House tariffs on pharmaceutical imports have reignited trade war worries and affected the dollar.
President Trump announced new 100% duties on branded drugs and tariffs on a variety of goods, injecting uncertainty into inflation predictions. Despite the economic turbulence, shares of Eli Lilly rose by 1.7%, and Paccar topped the S&P 500 with a 4.4% gain.
(With inputs from agencies.)
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