US stocks close with slight gains as data keep Fed cut on track

US stocks closed out the trading week with slight gains on Friday as the latest flurry of economic data kept elevated expectations fora US Federal Reserve interest rate cut next week intact.

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In the wake of the 43-day government shutdown, market participants have been digesting delayed economic data as the backlog slowly dwindles, while also looking to secondary indicators to gauge the health of the economy.

Delayed data from the Commerce Department showed consumer spending, which accounts for more than two-thirds of economic activity, rose 0.3% in September to match the estimate of economists polled by Reuters, after a downwardly revised 0.5% gain in August.

In addition, the Personal Consumption Expenditures (PCE) Price Index increased 0.3% after gaining 0.3% in August, the Bureau of Economic Analysis said. In the 12 months through September, the PCE Price Index advanced 2.8% after rising 2.7% in August. Both were in line with forecasts.

A separate report from the University of Michigan’s Surveys of Consumers showed consumer sentiment improved in early December to 53.3, topping the 52 forecast.