US stocks ended higher, hitting a four-month winning streak as hopes of a soft landing increase

• US stocks rose on Friday, with the Dow Jones closing at a record high for the second day in a row.

• The S&P 500 and the Dow Jones posted a four-month winning streak in August amid renewed hopes for a soft landing.

• Investors are expecting a Fed rate cut next month after PCE inflation data met expectations.

U.S. stocks traded higher on Friday, with the Dow Jones Industrial Average closed at a record high for the second day in a row and the fourth day this week.

The S&P500 and the Dow Jones Industrial Average both ended August with their fourth straight monthly gains as hopes that the US economy can avoid a recession were renewed during the month following a brief wave of volatility fueled by a weak jobs report in July .

Investors were further reassured by new inflation data on Friday, with the personal consumption expenditure index rising 0.2% and 2.5% on a monthly and annual basis, respectively, in line with economists’ estimates.

Investors viewed the inflation data as confirmation of the Federal Reserve’s expected rate cut at its September 18 policy meeting.

“Optimism about the Fed’s upcoming easing cycle is increasing after this morning’s PCE data and Consumer Sentiment report reflected easing price pressures and downward revisions to inflation expectations,” said Interactive Brokers economist José Torres.

Looking ahead to next week, investors will be eagerly awaiting the August jobs report, which will be released on Friday, September 6.

If the report shows some weakness in the labor market, it could prompt the Fed to implement a 50 basis point rate cut next month, instead of the expected 25 basis point cut.

Economists expect the U.S. economy added 162,000 jobs in August, which should reduce unemployment slightly from 4.3% to 4.2%.

Here’s where the US indexes stood at 4pm on Friday:

Here’s what else is going on:

The story continues

In commodities, bonds and crypto:

• West Texas average Crude oil fell 3.32% to $73.39 per barrel. Brent crude oilthe international benchmark, fell 2.61% to $76.76 per barrel.

• Gold fell 1.03% to $2,533.90 an ounce.

• The yield on ten-year government bonds rose by five basis points to 3.917%.

• Bitcoin fell 0.86% to $58,861.

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