The major averages climbed to fresh record highs on Friday as easing geopolitical concerns continued to provide a tailwind to global equity markets. Both President Trump and Treasury Secretary Steven Mnuchin gave positive remarks surrounding the agreed upon “phase-one” trade deal. The Dow rose 78 points to cap its weekly gain at 1.1%. The S&P 500 climbed 0.5% and notched a fourth straight week of gains with a 1.7% advance. The Nasdaq Composite added 0.4%, jumping 2.2% for the week.
Economic data was in focus, with the core PCE deflator, which is the Fed’s preferred gauge of inflation, ticking up to a 1.6% annualized reading. It came in below the Fed’s 2.0% target, but above consensus forecasts of 1.5%. Separately, the final print of third-quarter U.S. GDP came in at a 2.1% annualized reading, matching analyst estimates. Additional surveys revealed personal income rose more than anticipated in November, while personal spending climbed 0.4%, in-line with projections. A final reading on consumer sentiment levels in December came in at 99.3, just above the preliminary reading of 99.2. Treasuries were mixed, with the yield on the 10-year note adding one basis point to 1.92%.
All 11 S&P 500 sectors ended the session in positive territory with the Energy and Utilities groups pacing the gains. In corporate news, Nike lost 1.2% after the athletic apparel maker reported lower-than-expected revenue growth in North America following a beat on both the top and bottom line. In commodities, WTI crude lost 1.4% to $60.33/barrel paring its weekly advance to 0.5%. COMEX gold dipped 0.2% to $1,474.70/ounce.