Indexes rally as Apple surges in big tech, China restrictions weigh on oil and Musk completes Twitter deal.

U.S. stocks headed higher in Friday’s trading session. The Dow Jones rose on better-than-expected inflation data while the Nasdaq was weighed down by the weak earnings from Amazon. 

At around 14:36 GMT, the Dow Jones gained 1.5%, the S&P 500 was up 1.1 % and the Nasdaq was up 1.3%. However, the indexes finished the session lower. The Dow fell 0.1%, the S&P was down 0.71% and the Nasdaq was down 1.86%.

The Commerce Department’s inflating measure, also known as the personal consumption expenditure index, increased 5.1% in September against an expectation of 5.2% over the same month in the prior year. This did not include energy and food prices. For the month, core PCE rose 0.5%.

That came alongside with data on spending and personal income which demonstrated that consumers continued to spend at a rate that outpaced the rise in prices. Personal spending increased 0.6% for the month, quicker than the price of the average shopping basket. Personal consumer expenditures price index increased 0.3% and personal income rose 0.4% in the month.

The PCE reading may ease the fears of traders that the Fed will pursue its aggressive interest rate hike route. Many investors see the likelihood of another 75 basis points rise next week. 

Shares of Amazon fell 9.9% and hit a 52-week low as another gloomy day continued, meanwhile, fellow tech giant Apple, beat expectations as shares rose 6.9%. Although, iPhone sales were slightly weaker then estimates. 

Oil prices eased on the markets about 1% as China Covid restrictions continue, poising the weekly gain. Crude fell 1.3%, or $1.18, to $87.90. U.S. gasoline futures fell about 3%, while U.S. diesel futures increased about 5% (highest since mid-June). 

Oil firms, Exxon and Chevron, carried the gains in energy after the pair reported better-than-expected quarterly results. 

To finalise the day, Elon Musk has completed the deal to take over Twitter for $44 billion. The billionaire hinted by tweeting on Thursday night stating “the bird is freed”.

(Sources: investing.com, reuters.com, CNBC.com)