NEW YORK, New York - U.S. stocks rallied on Friday as economic data showed the U.S. Federal Reserve has likely tamed inflation.

The Personal Consumption Expenditures Price Index for January came in at 2.5 percent, according to the Bureau of Economic Analysis, in a report published on Friday.

The January figure was slightly better than December when the PCE price index registered a 2.6 percent increase. 

U.S,. stock prices rallied on the news, which was broadly in line with expectations, with major indices recording across-the-board gains.

Meantime in  Tokyo, the Statistics Bureau of Japan  said the Tokyo headline CPI retreated sharply to 2.9 percent in January, from 3.4 percent in December. The news sent the Japanese yen sharply lower. The Nikkei 225 in Tokyo earlier tumbled, with the key index tumbling 1,100.67 points or 2.88 percent to 37,155.50.

Following are Friday's closing quotes for the key U.S. indexes:

• S&P 500: The Standard and Poor's 500 index advanced by 92.93 points, or 1.59 percent, closing at 5,954.50. This rise was influenced by a favorable inflation report, suggesting a potential easing of price pressures.

• Dow Jones Industrial Average: The Dow Jones climbed 601.41 points, or 1.39 percent, ending at 43,840.91. The surge was partly due to strong performances in industrial and technology sectors.

• NASDAQ Composite: The NASDAQ Composite index increased by 302.86 points, or 1.63 percent, to finish at 18,847.28. Gains in technology stocks, particularly in artificial intelligence sectors, contributed to this upward movement.

U.S. Dollar Strengthens Amid Tariff Announcements

The U.S. dollar exhibited strength against all the major currencies following President Donald Trump's confirmation of new tariffs. A 25 percent tariff on Mexican and Canadian goods, along with an additional 10 percent on Chinese imports, is set to commence on March 4. This development has heightened market volatility and bolstered the dollar's safe-haven appeal.

Currency Pair Highlights

• EUR/USD: The euro weakened against the dollar, with the pair last trading at 1.0366, a decline of 0.30 percent. This movement reflects concerns over potential economic slowdowns in the Eurozone amidst global trade tensions.

• USD/JPY: The U.S. dollar appreciated against the Japanese yen, reaching 150.48, an increase of 0.46 percent. The yen's depreciation is partly due to Friday's report of a significant retreat in the nation's CPI.

• USD/CAD: The U.S. dollar rose against the Canadian dollar, with the pair at 1.4464, up by 0.21 percent. Canada's exposure to U.S. tariffs has raised concerns about its export-driven economy, contributing to the loonie's decline.

• GBP/USD: The British pound saw a modest decrease against the U.S. dollar, trading at 1.2575, down 0.19 percent. 

• USD/CHF: The U.S. dollar strengthened against the Swiss franc, reaching 0.9028, an uptick of 0.37 percent. The franc's traditional role as a safe-haven currency has been overshadowed by the dollar's recent gains amid global trade concerns.

• AUD/USD: The Australian dollar declined against its U.S. counterpart, trading at 0.6201, a drop of 0.54 percent. Australia's economic ties to China makes it susceptible to the adverse effects of U.S.-China trade tensions.

• NZD/USD: The New Zealand dollar also weakened against the U.S. dollar, standing at 0.5591, down 0.70 percent. Similar to Australia, New Zealand's economy is influenced by its trade relationship with China, and the looming tariffs have added downward pressure on the kiwi.

Overall, the foreign exchange market remains sensitive to geopolitical developments and economic policy changes. 

The U.S. Dollar Index rose by 0.34 points or 0.32 percent, standing at 107.59. Commodity markets also reflected the day's volatility, with oil prices remaining under $70 per barrel and gold prices experiencing a decline.

Canadian stocks rise, Europe has quiet day, bears maul Asian markets

Global stock markets experienced a turbulent session on Friday as investors grappled with escalating trade tensions and economic uncertainties.

Canadian Markets

• S&P/TSX Composite Index: Canada's main stock index rose by 265.21 points, or 1.06 percent, closing at 25,393.45. The market's performance was bolstered by positive domestic economic data and a rebound in energy stocks.

UK and European Markets

In the United Kingdom, the FTSE 100 index demonstrated resilience, closing at 8,809.74 points, an increase of 53.53 points or 0.61 percent. This uptick was largely attributed to optimism surrounding potential trade agreements with the United States, following Prime Minister Keir Starmer's visit to the White House.

Germany's DAX index remained relatively flat, ending at 22,551.43 points, a marginal rise of 0.54 points.

Similarly, France's CAC 40 edged higher by 9.11 points or 0.11 percent, concluding at 8,111.63 points.

Conversely, the EURO STOXX 50 index dipped by 9.02 points or 0.16 percent to settle at 5,463.54 points, and the Euronext 100 Index decreased by 3.91 points or 0.25 percent, closing at 1,583.68 points.

Asian Markets

Asian markets faced significant downturns, with Hong Kong's Hang Seng Index plummeting by 776.97 points or 3.28 percent to 22,941.32 points.

Japan's Nikkei 225 also suffered a substantial loss, dropping 1,100.67 points or 2.88 percent to finish at 37,155.50 points.

The Shanghai Composite in mainland China dropped 67.17 points or 1.98 percent, closing on Friday at 3,320.90.

The Taiwan Weighted index in Taipei shed 349.37 points or 1.49 percent to 23,053.18.

India's S&P BSE SENSEX dropped 1,414.33 points or 1.90 percent to 73,198.10 points, and Indonesia's IDX Composite fell by 214.85 points or 3.31 percent to 6,270.60 points.

The FTSE Bursa Malaysia KLCI decreased by 11.90 points or 0.75 percent, ending at 1,574.70 points.

Oceania

In Australia, the S&P/ASX 200 fell by 95.80 points or 1.16 percent, closing at 8,172.40 points, while the All Ordinaries declined by 102.20 points or 1.20 percent to 8,403.90 points. These declines were influenced by concerns over new tariffs, particularly those proposed for China, Australia's biggest export customer, and a volatile session on Wall Street.

In contrast, New Zealand's S&P/NZX 50 Index Gross gained 60.55 points or 0.48 percent, reaching 12,601.42 points.

Middle East Markets

Most Mideast markets were closed on Friday and will re-open on Sunday.

Africa

The JNOU.JO in South Africa retreated 99.34 points or 2.14,546.264 percent to 4,546.26.

Overall, global markets are navigating a complex landscape marked by trade disputes and economic data pointing towards potential slowdowns, prompting investors to exercise caution.

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