Wall Street’s major indexes closed the week with solid gains, supported by a temporary U.S.-China tariff truce, cooling inflation, and a surge in technology stocks. Despite a dip in consumer sentiment and concerns over rising short-term inflation expectations, investor optimism remained strong.
On Friday, the University of Michigan’s consumer sentiment index fell to 50.8 for May from 52.2 in April. At the same time, one-year inflation expectations jumped to 7.3% from 6.5%, raising eyebrows in the market.
Meanwhile, political uncertainty added to the caution. House Budget Committee Chairman Jodey Arrington warned that a planned vote on President Donald Trump’s tax legislation might be delayed due to internal dissent.
As of mid-morning Friday, the Dow Jones Industrial Average ticked up 7.64 points to 42,330.39, the S&P 500 added 5.46 points to reach 5,922.39, and the Nasdaq Composite rose 15.17 points to 19,127.49. All three indexes were set for notable weekly gains.
Markets had found their footing earlier in the week after the U.S. and China agreed to a 90-day pause in their escalating trade war. That momentum helped push the S&P 500 back into positive territory for the year—its first time since February—though it still trades about 4% below its all-time high.
Art Hogan, Chief Market Strategist at B Riley Wealth, noted, “The combination of trade deals with the UK and a temporary halt in U.S.-China tariffs opens the door for multiple bilateral agreements, fueling investor optimism.”
Technology stocks were major contributors to the rally, with Alphabet rising 2.4%. The tech sector is on pace for an 8% weekly gain, reflecting increased investor appetite.
In individual stock news, UnitedHealth rebounded 1.4% after a steep 11% drop linked to a U.S. Department of Justice investigation. Charter Communications jumped 3% following its $21.9 billion acquisition of Cox Communications. On the downside, Applied Materials slipped 6.6% after reporting lower-than-expected second-quarter revenue.
Market breadth was positive, with advancing issues outnumbering decliners on both the NYSE and Nasdaq. The S&P 500 recorded 13 new 52-week highs, while the Nasdaq posted 42 new highs and 42 new lows.
