AP – Stocks ended mostly higher on Friday, helping the S&P 500 index close out its best week since February. It’s a notable turnaround for the market, which only the previous week had its worst week since February on concerns about inflation.
The S&P 500 index closed up 14.21 points, or 0.3 per cent, to 4,280.70. The Dow Jones Industrial Average rose 237.02 points, or 0.7 per cent, to 34,433.84 and the Nasdaq Composite lost 9.32 points, or 0.1 per cent, to 14,360.39. With Friday’s gains, the S&P 500 index ended the week up 2.7 per cent, its best five-day period since February 5.
The Dow’s gains were driven by a surge in Nike, which reported blowout earnings late Thursday and gave investors a strong outlook for the year. Nike rose 15.5 per cent.
Markets have calmed since the Federal Reserve surprised investors last week by saying it could start raising short-term interest rates by late 2023, earlier than expected, if recent high inflation persists.
The calming of investors’ nerves has largely helped the market undo the damage from the previous week. Investors got another data point on inflation on Friday.
The Commerce Department said inflation tied to a gauge of consumer spending that is closely watched by the Federal Reserve increased 0.4 per cent in May and is up 3.9 per cent over the past 12 months, well above the Fed’s two per cent target for annual inflation.
“Today’s inflation data should calm some nerves about runaway inflation. Remember, the PCE is the Fed’s favourite measure of inflation, and it very well could be near a peak in inflation,” wrote chief market strategist for LPL Financial Ryan Detrick in an email to investors.