Stocks closed mostly higher Friday as the benchmark S&P 500 wrapped up its best week since February, reports CNBC. The index rose 14 points to a record 4,280, while the Dow rose 237 points to 34,433, and the Nasdaq dipped 9 points to 14,360. For the week, the S&P was up 2.7%, the Dow 3.4%, and the Nasdaq 2.4%. 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, per the AP. Nike jumped 15%. 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.
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% in May and is up 3.9% over the past 12 months, well above the Fed’s 2% target for annual price increases. “Today’s inflation data should calm some nerves about runaway inflation. Remember, the PCE is the Fed’s favorite measure of inflation, and it very well could be near a peak in inflation," Ryan Detrick, chief market strategist for LPL Financial, wrote in an email to investors.
(Read more stock market