The US Bureau of Economic Analysis and Bureau of Labor Statistics released fresh economic data on Friday that offered investors a clearer read on the labour market and inflation, closing a volatile week of corporate earnings on Wall Street. The figures arrived days after the Federal Reserve held interest rates steady.

The data followed the Federal Open Market Committee's decision earlier in the week to keep its benchmark rate unchanged, as Chair Jerome Powell cited persistent uncertainty over tariff-driven inflation. Economists at Goldman Sachs and JPMorgan had forecast the personal consumption expenditures price index, the Fed's preferred inflation gauge, to remain elevated.

The reports coincided with the busiest stretch of second-quarter earnings season, in which major technology, energy and consumer companies reported results. Analysts at FactSet said corporate profits had broadly exceeded reduced expectations, though guidance remained cautious given tariff pressures on input costs and supply chains.

The combined signals shaped expectations for the Fed's September meeting, where traders in the CME FedWatch tool had priced in a possible rate cut. A US Treasury spokesperson declined to comment on the market reaction ahead of the data release.

Market strategists at Morgan Stanley said the labour figures would prove decisive in determining whether the central bank could ease policy without reigniting inflation. Consumer spending and wage growth will be under close scrutiny.