The Dow gains 600 points after a solid economic report and fresh inflation data

As the day ended, the Dow Jones Industrial Average climbed 654 points higher, or 1.6%, to 40,589. The S&P 500 jumped 1.1%, and the tech-heavy Nasdaq $NDAQ increased 1.34%.

Inflation rises moderately in June

The personal consumption expenditures price index, an important measure for the Federal Reserve, indicated that inflation was a bit higher in June, paving the way for the widely anticipated September interest rate cut.

The U.S. Bureau of Economic Analysis reported on Friday that the PCE price index increased by 0.1% in June and was up 2.5% from a year ago, which was in line with the estimates. Meanwhile, the core inflation, which excludes food and energy prices, increased by 0.2% monthly and 2.6% annually, both in line with the estimates.

The U.S. economy is growing

The U.S. economy grew significantly more than expected in the second quarter. The Commerce Department reported that the real gross domestic product, a measure of all the goods and services produced, rose from April to June by 2.8% at an annualized pace adjusted for seasonality and inflation. Economists had predicted a growth of 2.1%.

Shares of 3M jump over 22%

The shares of 3M $MMM Company, a diversified technology company, rallied over 22% on Friday after the company released a strong earnings report. The stock achieved a new 52-week high, making it the top performer on the Dow.

The Minnesota-based firm generated $6.26 billion in revenue for the second quarter, surpassing analyst estimates of $5.83 billion. The company reported earnings of $1.93 per share, exceeding analyst estimates of $1.68 per share. CEO Bill Brown said the company will focus on innovation and new products.