By Liz Moyer
Investing.com -- U.S. stocks rose Friday, with the Dow jumping on better-than-expected inflation data while the Nasdaq was weighed by disappointing earnings from Amazon.
The Commerce Department’s inflation gauge, known as the personal consumption expenditures index, rose 5.1% in September, not including food and energy prices, against an expected 5.2% gain over the same month last year. For the month, core PCE rose 0.5%.
That comes hand in hand with data on personal income and spending that showed consumers continued to spend at a rate that outpaced the rise in prices.
The PCE reading could ease investor fears that the Federal Reserve will continue on its aggressive interest rate hike path. Many see the possibility that the Fed, which is expected to raise rates another 0.75 percentage point next week, could start to ease off that pace when it next meets in December.
Tech stocks were initially weighed down by Amazon's (NASDAQ:AMZN) gloomy forecast for holiday quarter revenue, which it expects will take a hit from foreign exchange effects. Shares of Amazon fell 9.9% and hit a 52-week low.