The Dow climbs 500 points and Nvidia shares rebound as new inflation data reassures investors

The Dow Jones Industrial Average climbed more than 500 points on Friday morning, buoyed by inflation data that helped the market recover from losses earlier this week. The personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation, rose a modest 0.1% in November compared to the previous month.

On an annual basis, the PCE price index reflected an inflation rate of 2.4% – slightly above the Fed’s long-term target of 2% but well below analysts’ consensus estimate of 2.5%. Cooler inflation data is expected to ease concerns about ongoing price pressures and raise hopes that the Fed could cut interest rates more than twice in 2025.

In the morning, the Dow Jones Industrial Average gained over 500 points, or 1.2%. The tech-heavy Nasdaq and S&P 500 each rose 1%.

AI stocks rallied on Friday morning to become the best-performing stocks. Nvidia (NVDA), which experienced a sharp selloff earlier in the week, rose 2.3% to trade at $133 per share. Shares of Super Micro Computer (SMCI) and Broadcom (AVGO) rose 4.3% and 3.7%, respectively.

Bitcoin fell below $92,000 early Friday before recovering somewhat after the Federal Reserve signaled a slowdown in interest rate cuts in 2025. The leading cryptocurrency was trading at around $96,000 on Friday morning, down around 7.7% from the previous day. Bitcoin has slumped more than 10% since the start of the week when it hit highs above $106,000.

– Rocio Fabbro contributed to the article

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