Dow Jones climbs nearly 700 points on Friday in a recovery bid.

September rate cut is still being priced in as a sure thing after US inflation print.

With US PCE inflation in the books, markets will pivot to next Friday’s NFP.

The Dow Jones Industrial Average (DJIA) scorched 700 points higher on Friday after a close-enough-to-expectations print in US Personal Consumption Expenditures Price Index (PCE) inflation came in cool enough to allow investors to keep hopes for a September rate cut pinned to the ceiling. Markets are expecting the Federal Reserve (Fed) to hold rates steady for one more meeting in July before delivering the first quarter-point trim in a new rate-cutting cycle beginning in September.

Core US PCE inflation held steady at 2.6% YoY in June, flouting median market forecasts of a tick down to 2.5%. Near-term PCE inflation also accelerated MoM in June, rising to 0.2% from the forecast hold at 0.1%.