U.S. Stocks Close Higher for Fifth Day, Capping Robust Week for Wall Street

U.S. stocks closed higher on Friday, marking the fifth consecutive day of gains and capping off a robust week for Wall Street.

U.S. stocks rose on Friday, notching up a fifth straight day of gains and rounding off a robust week for Wall Street as investor pessimism over consumer sentiment and inflation remained largely contained.

The S&P 500 rose 5.3%, the Dow Jones gained 3.4% and the Nasdaq advanced 7.2% last week.

Technology stocks powered much of the rally. NVIDIA (NVDA) and Tesla (TSLA) shares surged last week.

(Note: The article mentions that Saudi Arabia approved the use of SpaceX’s Starlink satellite internet service for aviation and maritime use. In addition, Musk plans to bring robotaxis to Saudi Arabia. Meanwhile, NVIDIA will send 18,000 AI chips to Saudi Arabia.)

Despite the market gains, economic data highlighted persistent consumer unease. The University of Michigan’s consumer sentiment index slid to its second-lowest level on record.

Moreover, consumers now anticipate prices to rise by 7.3% over the next year, denoting an increment from 6.5% the previous month.

Additionally, investor sentiment was buoyed by a 90-day tariff truce between U.S. and Chinese officials, dialing down concerns over a worsening trade spat. The agreement, reached during a video call last week, helped spur risk-on behavior and renewed confidence in the markets.

“Markets are repricing the stagflation risk right now,” said Jamie Cox, managing partner at Harris Financial Group.

“The U.S. consumer may say he/she is worried, but they aren’t spending like they are. Consumption trumps all once you filter out all the noise.”

While the truce brought temporary relief, trade uncertainty remains. President Donald Trump announced that his administration will begin sending letters to various countries outlining new tariff rates within the next two to three weeks.

These letters would replace direct negotiations in cases where time constraints exist.

In a statement on Friday, the White House said the move is part of an ongoing effort to reduce the U.S. trade deficit and ensure fair treatment for American workers and companies.

The administration has been reviewing tariffs on goods from China and other countries since Trump imposed them last year in an attempt to renegotiate trade deals he said were unfair to the United States.

Trump has said he wants to reduce the U.S. trade deficit with China, which reached a record $419 billion in 2020.

The administration is also considering tariffs on cars and auto parts, which could escalate tensions with U.S. trading partners.

Investors will now turn their attention to next week’s economic data releases, including the May jobs report and the latest reading on inflation.

Any signs of slowing economic growth or rising inflation could put pressure on the Federal Reserve to cut interest rates sooner than expected.

In the meantime, here are a few of the best and worst-performing ETFs last week: