Wall Street extends its gains thanks to growth stocks

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Wall Street’s main indexes rose on Friday, buoyed by high-growth and tech stocks, as investors await key inflation data due next week to gauge the pace of earnings. Fed interest rate hikes.

* US equities have stabilized this week after a sharp decline that began in mid-August on concerns about the impact of tighter monetary policy and a slowdown in Europe and China.

* Indices are on track to break a three-week losing streak, despite statements from Federal Reserve policymakers raising expectations of a sharp interest rate hike at the meeting of the central bank from 20-21 September.

* “The last two weeks of August were oversold and this is a relief rally,” said Dennis Dick, head of market structure at Triple D Trading.

* “The market is somewhat ahead of next week’s CPI (Consumer Price Index) data. It is quite predictable that next week’s data will be moderate. We have had a significant deflation of raw materials in the last four weeks”.

* Investors will be watching the August inflation report due next Tuesday for any signs that price pressures may be easing. Prices are expected to have risen 8.1% in August, up from 8.5% in July.

* Traders are pricing in an 86% chance of a 75 basis point rate hike at the next meeting, up from 57% a week ago, according to CME Group’s (NASDAQ: CME ) Fedwatch tool.

* Fed Chairman Jerome Powell said Thursday that the US central bank is “strongly committed” to reining in inflation, but hope remains that it can be done without the “soaring social costs” that involved earlier struggles against inflation.

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* High-growth stocks including Tesla (NASDAQ: ), Apple Inc (NASDAQ: AAPL ), Alphabet (NASDAQ: GOOGL ) Inc and Amazon.com Inc (NASDAQ) gained more than 1%.

* The Dow Jones Industrial Average was up 271.31 points, or 0.85%, at 32,045.83, while the S&P 500 was up 42.48 points, or 1.06%, at 4,048.66. The gained 170.53 points, or 1.44%, to 12,032.66 points.

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