World stock markets rally, treasury yields fall on inflation data

European shares .STOXX hit a three-week high and rose 1.42%. Britain's FTSE .FTSE also hit a three-week high, and was heading for its best weekly showing since mid-March.The Dow Jones Industrial Average .DJI rose 575.77 points, or 1.76%, to 33,212.96, the S&P 500 .SPX gained 100.4 points, or 2.47%, to 4,158.24 and the Nasdaq Composite <.IXIC<> added 390.48 points, or 3.33%, to 12,131.13.

NEW YORK: Global markets enjoyed a broad-based rally on Friday, while the yield on benchmark U.S. Treasuries fell after data showed that U.S. consumer spending rose in April and the uptick in inflation slowed, two signs the world's largest economy could be on track to grow this quarter.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.9% last month, and although inflation continued to increase in April, it was less than in recent months. The personal consumption expenditures (PCE) price index rose 0.2%, the smallest gain since November 2020.