The S&P 500 rose 2.5% and finished 6.6% higher for the week, its best weekly gain since
The strong finish for the week came as investors received potentially encouraging news about inflation. The
The report was released as
“At this point that’s all the market needs,” said
The S&P 500 ended 100.40 points higher at 4,158.24. The Nasdaq rose 390.48 points to 12,131.13. It was the third straight gain for both indexes. The Dow rose 575.77 points to 33,212.96, its sixth-straight gain.
Smaller company stocks also gained ground. The Russell 2000 rose 49.66 points, or 2.7%, to 1,887.90.
The broader market has been in a slump for nearly two months as concerns about inflation and rising interest rates pile up. Investors were spooked last week by disappointing reports from key retailers, including
Trading remained choppy throughout the week, though the market mostly pushed higher, as retailers including
Retailers were among the biggest gainers Friday as investors continued reviewing the latest round of earnings to get a better sense of just how much pain rising inflation is inflicting on businesses and consumers. Beauty products company
Disappointing financial updates and earnings weighed on several companies. Clothing retailer American Eagle fell 6.6% after reported weak first-quarter earnings.
Inflation is at a four-decade high and has been persistently squeezing businesses. Higher costs prompted companies to raise prices on everything from food to clothing to protect their margins and consumers remained resilient.
Supply chain problems at the heart of rising inflation were worsened in the wake of
The extra inflation squeeze has made it even more difficult for businesses to offset costs and is seemingly prompting a shift in consumer spending away from expensive items and toward necessities. It has also raised concerns that the
The yield on the 10-year
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Veiga reported from
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