With Friday's report, the pace of core inflation has slowed to just 1.9% in the last six months, putting inflation on track to hit the Fed's 2% goal next year. Excluding volatile food and energy prices, the index rose 3.2%, less than the 3.3% increase economists were predicting. On a month-over-month basis, the index fell, suggesting prices declined for the first time since 2020. The personal consumption expenditures (PCE) price index rose 2.6% in the twelve months through November, the index's lowest reading since February 2021. For the week, the Nasdaq added 1.2%, the S&P 500 rose 0.7%, and the Dow ticked up 0.2%. The Nasdaq and the S&P 500 both gained about 0.2% Friday, while the Dow Jones Industrial Average slipped less than 0.1%.
Stocks just barely rose Friday to cap off their eighth straight winning week after the Fed's preferred inflation gauge showed prices fell for the first time since 2020 in November.
