Market Gains on Cooling Inflation and Global Stimulus

The stock market experienced notable gains driven by several factors. The PCE index, the Federal Reserve's preferred measure of inflation, showed a cooling trend, bolstering the case for a potential rate cut.

This has sparked optimism for a soft landing, reflected in strong GDP readings. Additionally, China's recent stimulus measures have injected further confidence into the market, with significant surges seen in companies like Alibaba and JD.com.

The S&P 500, Dow, and Nasdaq Composite are all on track for weekly gains. Luxury stocks, in particular, are poised for their best week in years.

The Federal Reserve's interest rate cut has also played a pivotal role, benefiting borrowing-dependent firms across various sectors, although some experts caution against overvaluation. Overall, the combination of cooling inflation, robust economic indicators, and supportive global policies has painted a positive outlook for the market.