US stocks extend rebound on inflation optimism
US stocks closed higher on Friday, after soaring a day before on hopes that easing inflation could pave the way for slower interest rate hikes by the Federal Reserve. The Dow Jones picked up 0.1 percent to 33,747 after retreating earlier in the last trading day of the week, while the S&P 500 climbed 0.9 percent to 3,992. The Nasdaq made the biggest gains, bouncing 1.9 percent, to 11,323. The performance came despite pressure from an announcement by embattled cryptocurrency platform FTX, which announced on Friday that it was filing for bankruptcy and that chief executive Sam Bankman-Fried has resigned. Bitcoin fell 7.3 percent. It is "premature" however to assume that there would not be more fallout from shifts in the crypto sector, said Tom Cahill of Ventura Wealth Management. He added that overall, the market is still down from its peak. "Investors are still expecting the Fed to raise about 50 basis points in December, and then we'll see what happens," he added. Wall Street stocks had rallied on Thursday after a closely watched government data report showing that annual consumer price inflation eased to 7.7 percent in October, the lowest since January. That could open doors for the US central bank to be less aggressive in its actions to cool the world's largest economy. Meanwhile, casino stocks picked up after Chinese authorities indicated some easing in Covid-19 control measures, including a slightly shorter quarantine for international travellers. (AFP)