The stock market rallied on Friday, marking its fifth consecutive session of gains and a significant weekly increase as investors moved past disappointing consumer sentiment data and ongoing inflation concerns. The S&P 500 climbed 0.70% to close at 5,958.38, while the Nasdaq Composite gained 0.52% to end at 19,211.10. The Dow Jones Industrial Average added 331.99 points, or 0.78%, finishing at 42,654.74.
The week’s performance saw the S&P 500 surge by 5.3%, the Dow gain 3.4%, and the Nasdaq Composite rise by 7.2%. Technology stocks had a robust week, with notable gains across the sector. Shares of major tech companies surged as investor confidence grew.
Stocks have rebounded strongly since U.S. and Chinese officials agreed on a 90-day pause on tariff measures earlier this week, alleviating fears of escalating global trade tensions and potential economic risks. “Markets are repricing the stagflation risk right now,” said Jamie Cox, managing partner at Harris Financial Group. “The U.S. consumer may say they are worried, but they aren’t spending like they are.
Consumption trumps all once you filter out all the noise.”
Wall Street remains hopeful for more clarity on the trade front in the coming weeks. President Donald Trump announced that his administration will send letters to various countries detailing new tariff rates, potentially replacing some trade negotiations.
Stocks rally despite inflation worries
Virgin Galactic shares climbed 2% on Friday, following the company’s announcement of its first spaceflight with a new SpaceShip planned for summer 2026. The company also reported a narrower-than-expected first-quarter loss. Novo Nordisk saw its shares fall nearly 4% after the announcement of CEO Lars Fruergaard’s ouster.
Analysts have pointed out that while replacing the CEO might be a positive sentiment, it does not address the company’s underlying strategic issues. Shares of semiconductor manufacturer Applied Materials dropped 6% after the company posted disappointing fiscal second-quarter revenue figures. Similarly, Take-Two Interactive dipped 1.8% following weaker-than-anticipated guidance for full-year bookings.
Coinbase shares rebounded by more than 9% on Friday after analysts dismissed worries over an SEC probe. The crypto exchange had confirmed an investigation, but analysts believe the market reaction was an overreaction. Galaxy Digital began trading on the Nasdaq under the ticker GLXY, opening at $23.50 per share.
The company has been focusing on high-growth areas like artificial intelligence and cryptocurrency. The latest American Association of Individual Investors survey indicated increased optimism among individual investors, while consumer sentiment fell in May amid inflation worries. The University of Michigan’s index showed a drop to 50.8, reflecting continued consumer concern over persistent inflation.
