US stocks rise amid economic data

US stocks finished higher on Friday as investors pored through newly-released economic data.

The Dow Jones Industrial Average rose 161.60 points, or 0.57 per cent, to 28,653.87. The S&P 500 increased 23.46 points, or 0.67 per cent, to 3,508.01. The Nasdaq Composite Index climbed 70.30 points, or 0.60 per cent, to 11,695.63, Xinhua reported.

All the 11 primary S&P 500 sectors advanced, with energy and materials up 1.85 per cent and 1.1 per cent, respectively, leading the gains.

Meanwhile, US-listed Chinese companies traded mostly higher, with nine of the top 10 stocks by weight in the S&P US Listed China 50 index ending the day on an upbeat note.

US personal consumption expenditures rose 1.9 per cent in July and personal income increased 0.4 per cent, the US Bureau of Economic Analysis reported on Friday.

“The consumer recovery continued in July, with solid growth in both income and spending,” Chris Low, chief economist at FHN Financial, said in a note, adding “compensation was significantly higher than the February low, but still has about 5 per cent to go before it fully recovers.”

Wall Street continued to digest the US Federal Reserve’s new policy strategy on inflation.

Fed Chairman Jerome Powell announced on Thursday that the central bank will seek to achieve inflation that averages 2 per cent over time, a new strategy for carrying out monetary policy to help fight the Covid-19 pandemic and boost economic recovery.