The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is paring its recent gains registered in the previous session and trading around 97.70 during the Asian hours on Friday.
Deutsche Bank’s Jim Reid highlights that the S&P 500 closed within half a percent of its record high, supported by a rebound in software and broader tech stocks as AI fears eased. Nvidia, the NASDAQ and the Magnificent 7 all advanced, while US IG and HY spreads tightened from year‑to‑date wides.
According to the US Department of Commerce, headline Personal Consumption Expenditures (PCE) inflation came in at 2.9% YoY in December. Core PCE, which strips out food and energy costs, ran a touch firmer at 3.0% YoY, suggesting underlying price pressures are still proving a bit sticky.