# US stocks rally Friday, S&P 500 gains 1.1% to limit weekly loss

**Published:** 2026-08-13T02:55:27.195Z  
**Topic:** Stock Market  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/6916e28f-9e7e-4c63-8aaf-9df534d986d1

US equities jump Friday as S&P 500 climbs 1.1% to 5,930.85, cutting weekly decline to 2% after cooler inflation data eases rate‑cut bets.

The S&P 500 surged 1.1% on Friday, lifting the index to 5,930.85 and trimming the week’s loss to 2% after a core‑inflation measure came in slightly below economists’ forecasts [2].

| At a glance | |
|---|---|
| S&P 500 daily gain | +1.1% (to 5,930.85) |
| Dow Jones daily gain | +1.2% (up 498 points) |
| Nasdaq daily gain | +1.0% |
| 10‑yr Treasury yield | 4.52% (down from 4.57%) |

## Inflation data and market reaction  
A report showed the Fed‑preferred inflation gauge for the prior month was modestly lower than the consensus estimate, a signal that price pressures may be easing from the peak of more than 9% [2]. The surprise prompted traders to reduce the probability of zero rate cuts in 2025 to about 16%, according to CME Group data [2]. The lower inflation reading helped “big‑tech” names, especially Nvidia, lead the rally, while the broader market saw roughly nine of ten S&P 500 constituents rise [2].

## Broader market impact  
The equity gains spilled over to bonds, with the 10‑year Treasury yield slipping to 4.52% from 4.57% the previous day [2]. The dollar and commodity markets were largely unchanged, while overseas indices posted modest declines across much of Asia and Europe [2]. The Dow Jones Industrial Average added 498 points, and the Nasdaq Composite rose 1%, marking the best day for the S&P 500 in six weeks [2].

## What to watch  
- Upcoming CPI release (next scheduled date) – another deviation from expectations could further reshape rate‑cut probabilities.  
- Federal Reserve policy meeting in early 2025 – any shift in the forward guidance on cuts will influence equity and bond markets.  
- Core inflation trend – sustained readings below forecasts may reinforce the view that the Fed can maintain a more accommodative stance.

The rally shows that even a modest improvement in inflation data can quickly reverse market sentiment, but the underlying uncertainty about future rate cuts and political developments keeps the outlook fragile.

## Sources
1. Piquenewsmagazine — [Stock market today: Wall Street rises to turn a dismal week into...](https://www.piquenewsmagazine.com/national-business/stock-market-today-wall-street-rises-to-turn-a-dismal-week-into-just-a-bad-one-9985974)
2. Nashuatelegraph — [Stock market today: Wall Street rises to turn a dismal week into...](https://www.nashuatelegraph.com/news/business/2024/12/21/stock-market-today-wall-street-rises-to-turn-a-dismal-week-into-just-a-bad-one/)
3. Latimes — [Wall Street rises to turn a dismal week into just a bad one](https://www.latimes.com/business/story/2024-12-20/stock-market-today-wall-street-rises-to-turn-a-dismal-week-into-just-a-bad-one)

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Cite as: TrendWatcher, "US stocks rally Friday, S&P 500 gains 1.1% to limit weekly loss", https://www.trendwatcher.in/article/6916e28f-9e7e-4c63-8aaf-9df534d986d1