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US stocks staged a sharp rebound on Friday, snapping a three-day streak of losses.
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Encouraging inflation data stoked optimism that the Federal Reserve can cut interest rates in September.
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The rotation into small-caps continued, with the Russell 2000 rising more than 1.5%.
US stocks rebounded Friday, helping reverse a streak of losses that dominated most of this week.
With investor confidence starting to waver in the tech-stock bull run, rotations out of the mega-cap sector sent indexes on a three-day decline. On Wednesday, the tech-heavy Nasdaq 100 suffered its worst day since 2022, dropping 3.6%.
That changed Friday, as encouraging inflation data injected new life into the rally. June’s personal consumption expenditures index aligned with forecasts, boosting investor certainty that interest rates could soon come down.
Headline PCE rose 0.2% from May and 2.6%…
