Stocks surged on Friday as the three major indices posted their first weekly gains of 2025, driven by easing inflationary concerns and strong corporate earnings.
The Dow Jones Industrial Average climbed 334.7 points or 0.8% to close at 43,487.8. The S&P 500 rose 1% to finish at 5,996.7, while the tech-heavy Nasdaq Composite advanced 1.5% to 19,630.2.
Technology stocks were among the top performers, with Tesla and Nvidia up 3.1% apiece, while Amazon rose 2.4%.
For the week, the Dow gained 3.7% and the S&P 500 added 2.9%, marking their strongest weekly advances since the U.S. presidential election in November. The Nasdaq rose 2.5% for its best one-week performance since early December.
These gains followed reports indicating a moderation in inflationary pressures. The core consumer price index rose less than expected on an annual basis, while December's producer price index showed a smaller-than-anticipated increase.
Additionally, major banks delivered strong earnings results, helping equities rebound from the sluggish December performance. Goldman Sachs and Citigroup shares each surged approximately 12% this week, while Wells Fargo gained 10.3%.
Investors are also turning their attention to next week, which features the second inauguration of Donald Trump as U.S. president. Markets rallied after his November re-election, driven by expectations of deregulation and tax cuts, themes that may continue to influence equity markets.
On the bond markets, 10-year and 2-year yields were at 4.623% and 4.283%, respectively.
U.S. stock and bond markets are set to remain closed on Monday for the Martin Luther King, Jr. public holiday.
