Stocks rose on Friday with the S&P 500 headed for its fourth positive week in a row on the hope that inflation is peaking.
The Dow Jones Industrial Average added 123 points, or about 0.4%. The S&P 500 gained 0.5%, and the Nasdaq Composite rose 0.6%.
The S&P 500 is up 2% on the week, and is on track for its longest weekly winning streak since November 2021. The Dow is up 2% for the week, while the Nasdaq Composite is 1.5% higher. For the Nasdaq, it is also the fourth positive week in a row.
The averages have been boosted by positive news on the inflation front this week. The consumer price index was flat in July, thanks in large part to falling gas prices, which lowered headline inflation. The produce price increase showed a surprise decline. Import prices also fell more than expected.
“Based on what the jobs number showed us this week, and what the CPI and the PPI in particular showed us this week, this may overall work pretty good for earnings. … The fundamentals are indeed getting better, even as many challenges remain in the landscape,” John Stoltzfus from Oppenheimer said on “Squawk on the Street.”
This week’s moves have extended a market rally off its mid-June lows. The S&P 500 is up 14.7% since the lows, while the Dow has gained 11.5% and the Nasdaq Composite is up 20.0%.
On the economic front, consumer sentiment data are due out later Friday.
