Why is the Fortescue share price launching 5% on Friday?

It's a good day to be invested in this iron ore giant.

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Key points
  • The Fortescue share price is rocketing higher today, gaining 4.7% to trade at $17.58 at the time of writing
  • That's despite no news having been released by the iron ore mining favourite
  • Though, the broader market is also well and truly in the green today, with the ASX 200 gaining 2.5% and the materials sector up 3.5%

The Fortescue Metals Group Limited (ASX: FMG) share price is leaping higher on Friday despite no fresh news from the iron ore giant. It's roaring alongside the broader market in the wake of a ripper session on Wall Street.

The S&P/ASX 200 Index (ASX: XJO) is up 2.57% at the time of writing, while the S&P/ASX 200 Materials Index (ASX: XMJ) has lifted 3.52%.

The Fortescue share price is doing better than that, however. It's surging 4.74% right now to trade at $17.58.

So, what's going on with the market and one of its favourite mining stocks on Friday? Let's take a look.

Woman jumping for joy at great news with wide open country around her.

Image source: Getty Images

What's going right for the Fortescue share price today?

The Fortescue share price is lifting alongside the broader market following the release of softer-than-expected US inflation data overnight and a moderate rise in the iron ore price.

Iron ore futures lifted 0.8% overnight to reach US$88.19 a tonne. Base metals also rose, with nickel leading the way, gaining 5.1%. That might be helping drive the iron ore favourite higher today.

Additionally, the US consumer price index was found to have lifted 0.4% in October and 7.7% over the 12 months prior. That drove gains across Wall Street amid hopes softening inflation could see the US Federal Reserve easing up on rate hikes.

Such international gains are being reflected right across the Aussie bourse today. Indeed, only two ASX 200 materials shares are in the red at the time of writing.

The Fortescue share price is also outperforming its major iron ore-focused peers today.

The Rio Tinto Limited (ASX: RIO) share price is gaining 3.71% right now to trade at $101.95, while that of BHP Group Ltd (ASX: BHP) is up 3.48% at $41.97.

Looking longer-term, however, the Fortescue share price has slipped 11.5% year to date. Though, it has gained 13.7% since this time last year.

Comparatively, Rio Tinto's stock is up 2% year to date, and that of BHP is down nearly 1%. They've both gained around 14.5% over the last 12 months.

Meanwhile, the ASX 200 is down 6% year to date and 3% over the last 12 months.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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