Dow notches record close after upbeat economic data

STORY: Wall Street's main indexes ended higher on Friday, with the Dow scoring a second consecutive record close, after fresh economic data raised expectations that the Federal Reserve will cut start cutting interest rates in September.

The Dow rose half a percent, while the S&P 500 and the Nasdaq both climbed more than 1%.

U.S. consumer spending increased solidly in July, suggesting the economy remained strong.

And the personal consumption expenditures report showed inflation last month rose just moderately.

Shana Orczyk Sissel is founder and CEO of Banríon Capital Management.

"So we have year over year PCE inflation of around 2.5 to 2.7%, depending if you're looking at core or not. And that's, you know, right in line with what the Fed wants to see. And so I think that that's a positive. If you're somebody who thinks, as I do, that the Fed is going to cut rates in September, there was nothing that came in that information that would suggest to the Fed that they don't have inflation under control."

Stocks on the move Friday included Nvidia, which rose 1.5%, rebounding from a more than 6% drop on Thursday after the AI chip leader failed to match sky-high investor expectations, despite upbeat results and an in-line forecast.

Dell Technologies, another AI-related stock, gained more than 4% after lifting its annual revenue and profit forecasts.

Intel jumped almost 10% following a report it was exploring options that could include a merger.

And shares of Trump Media & Technology Group, majority owned by former president Donald Trump, dipped 1.7% to a record low, leaving its stock market value at $3.9 billion.