S&P 500 and Nasdaq Close at Records as Softer PCE Fuels Rally
All three major US indexes closed at fresh records as monthly PCE inflation came in below expectations and oil prices retreated.
US equities extended their winning streak, with the S&P 500, Nasdaq Composite and Dow Jones Industrial Average all closing at fresh record highs. The S&P 500 has now posted its longest weekly winning streak since 2023.
The catalyst was a softer-than-expected core PCE inflation print at 2.4% year on year, which reinforced market pricing of two Federal Reserve rate cuts before year-end. Falling oil prices on US-Iran ceasefire optimism added a second tailwind.
Sector performance
- Technology led the advance, with Snowflake jumping after a $6 billion AWS contract and stronger-than-expected results.
- Energy lagged as crude prices slipped back toward $90 a barrel.
- Financials were mixed, with regional banks outperforming on steeper-curve hopes.
What to watch
The narrow leadership remains a concern. The equal-weighted S&P 500 has lagged the cap-weighted index by more than four percentage points year-to-date. A sustained broadening of participation — particularly into small caps and cyclicals — would confirm the rally has legs into the second half.