NEW YORK, May 27 (Xinhua) -- U.S. stocks rallied on Friday as market sentiment was lifted by a slowing inflation report.
The Dow Jones Industrial Average rose 575.77 points, or 1.76 percent, to 33,212.96. The S&P 500 added 100.40 points, or 2.47 percent, to 4,158.24. The Nasdaq Composite Index increased 390.48 points, or 3.33 percent, to 12,131.13.
All the 11 primary S&P 500 sectors ended in green, with consumer discretionary and technology up 3.47 percent and 3.44 percent, respectively, leading the gains.
The U.S. Commerce Department reported Friday that the nation's personal consumption expenditures (PCE) price index, the Federal Reserve's preferred inflation measure, rose 0.2 percent in April for a 6.3 percent year-on-year increase.
The core PCE prices, which exclude the volatile food and energy, rose 0.3 percent for a 4.9 percent year-on-year increase. Both the headline and core year-on-year increases fell 0.3 percentage points from March.
"PCE prices rose as expected in April, keeping the Fed on its path for now to hike the fed funds rate by 50bp at the next two meetings. Slower core price momentum is a positive sign inflation is moderating," Will Compernolle, senior economist at FHN Financial, said Friday in a note.
For the week, the Dow climbed 6.2 percent, snapping a streak of eight straight weekly declines. The S&P 500 and tech-heavy Nasdaq finished up 6.6 percent and 6.8 percent, respectively, both ending a run of seven consecutive weekly declines.
