US stocks closed a volatile week with a flash of optimism as investors mounted a comeback off promising inflation data and hardening expectations of coming interest-rate cuts. The Dow Jones Industrial Average added 1.6%, or more than 650 points. The S&P 500 rose about 1.1%, while the Nasdaq Composite put on 1% although both indexes were in the red for the week. Stocks turned positive after a turbulent series of sessions.
In play are earnings-fueled concerns about softness in the US economy, though Thursday's surprisingly hot GDP print eased those somewhat. Friday's big data point was the closely watched Personal Consumption Expenditures index, which provided more fuel to the notion of a still-strong economy and gradually cooling inflation.
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