Risk sentiment returned to Wall Street on Friday, revitalized by softer-than-expected November inflation data leading to a strong market rebound following the selloff triggered by the Federal Reserve’s recent meeting.
The Personal Consumption Expenditure price index rose 2.4% year-over-year in November, falling short of the 2.5% increase forecasted. The core PCE, a key gauge closely watched by the Fed, also missed expectations, rising 2.8% compared to the anticipated 2.9%.
By midday Friday, all major indices were in rally mode, with broad-based gains across sectors. In the S&P 500, 480 companies traded higher, and every sector advanced as investors welcomed the reprieve in inflationary pressures.
The real estate sector led the charge, rebounding sharply after being hit hardest in the aftermath of the Fed meeting. Small-cap stocks in the Russell 2000 also posted robust gains, powered by a strong recovery in regional banks.
The travel industry soared, driven by upbeat earnings and optimistic guidance from …
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