Indexes rise on inflation data supporting rate cut bets. On the last trading day of June, the averages extend their gains.

The three main Wall Street indexes are trading higher this Friday, following the release of inflation data that supports bets on interest rate cuts. On the last trading day of June, the averages extend their gains.

The Dow Jones Industrial Average, consisting of 30 large companies, is up 0.33% to 39,293.76 points, while the S&P 500, comprising 500 stocks, advances 0.35% to 5,502.32 points. The tech-heavy Nasdaq Composite gains 0.36% to 17,922.29 points.

This Friday, the Personal Consumption Expenditures (PCE) Price Index data was released in the United States, showing an increase of 0.2 percent. This figure was below the expected 0.3% and the previous 0.2%, which was revised to 0.1 percent.

The yield on 10-year U.S. Treasury bonds falls following the PCE inflation data, the Fed’s preferred inflation measure. Interest rate futures predict a first rate cut in September, with a 59.5% probability, according to CME’s FedWatch tool.

The session has mainly focused on economic data suggesting a higher likelihood of interest rate cuts by the Federal Reserve later this year.

Among individual stocks, Nike’s shares saw a sharp decline. The sportswear manufacturer lost 18% after the company cut its forecasts for this year, despite reporting better-than-expected results.

Shares of Donald Trump’s media company rose after the first presidential debate. Trump Media & Technology Group, the parent company of Truth Social, the former president’s social network, is up 3% after several weeks of significant losses.

By sectors, energy (0.88%) and industrials (0.87%) led the gains. Within the Dow Jones, notable advances were made by UnitedHealth (2.79%) and Salesforce (2.35%), while Nike (-18%) and Travelers (-1.41%) were among the notable decliners.

Wall Street remains hopeful that interest rates will begin to decline very soon, buoyed by artificial intelligence stocks. June is set to close as a positive month for the indexes, which have gained in five of the six months of the semester.