Stocks looked set to close the week in the green after President Donald Trump said the U.S. and China had signed a trade deal, bolstering hopes that a flurry of similar agreements would come before Washington’s July 9 deadline for reimposing tariffs.
Futures shrugged off PCE inflation data, which came in slightly above forecasts. Core PCE, which strips out food and energy prices, rose 0.2% on the month and 2.7% from a year earlier, the Bureau of Economic Analysis said Friday. That topped FactSet estimates for a 0.1% monthly and 2.6% annual gain. Headline PCE rose 0.1% on the month and 2.3% year over year, in line with expectations. It was the third straight month of tame inflation readings—a trend Fed officials have pointed to as evidence that price pressures are moving closer to target.
