U.S. Stocks Rally Into Friday Close as Global PMI Data Highlight Services Strength

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U.S. equities advanced broadly on Friday, with the major indexes closing higher despite continued weakness across global manufacturing indicators. The Dow Jones Industrial Average rose 493.30 points, or 1.08%, to 46,245.6, supported by strength in large-cap industrials and a generally upbeat tone across risk assets. The S&P 500 added 64 points, up 0.98% to finish at 6,602.96, while the Nasdaq Composite climbed 195 points up 0.88% to 22,273.1. Small-caps outperformed sharply, with the Russell 2000 jumping 2.85% to 235.65, a sign of improving investor appetite for domestic cyclicals.

The market’s rise came as fresh global business-survey data underscored an increasingly divergent economic backdrop. According to PMI readings summarized in the provided research, services activity continues to expand across most major economies while manufacturing struggles to gain traction. The global landscape remains one of “moderation rather than acceleration,” with composite PMIs generally above the 50 mark but showing persistent cracks in export-oriented sectors.

In the Eurozone, the composite PMI held near 52.4, its 11th consecutive month of growth, even as manufacturing slipped further into contraction at ~49.7. Export order volumes declined, and employment growth showed signs of flattening. Germany’s picture was more acute, with manufacturing falling to ~48.4 and export orders “collapsing sharply,” reflecting a deeper industrial slowdown.

Asia produced a similarly mixed signal. Japan’s composite PMI edged up to ~52.0, supported by services hiring at the strongest pace since June, even as manufacturing stayed below 50 amid soft new orders and weak export demand. India remained the global standout, with a composite reading of ~59.9, though its manufacturing gauge eased due to export softness and intensified price competition. Australia also showed services-led resilience, while export goods orders stayed subdued.

Investors appeared to take comfort in the fact that inflation pressures across these surveys continue to ease, especially in goods categories. Input-cost inflation in India rose at the slowest pace in more than five years, while Eurozone output-price inflation was the weakest in over a year. The data suggest central banks may gain additional room to maintain an extended pause, even if growth remains uneven.

Commodity markets offered a counterweight. U.S. crude futures for December 2025 fell 1.73% to $57.98, pressured by soft global manufacturing and persistent concerns about export demand. Gold futures slipped 0.09% to $4,056.20, holding steady despite rising risk appetite. Bitcoin extended its retreat, dropping 2.23% to $84,516.46, continuing a weeklong consolidation after recent highs.

The combined effect—strong domestic services indicators abroad, easing inflation trends, and market-friendly interpretations of plateauing growth—helped U.S. equities end the week on a firm footing. But the underlying message of the PMI data remains cautious: the global economy is still expanding, yet the “upside surprise canvas is thinner,” and manufacturing-heavy regions face a greater vulnerability if export demand weakens further.