S&P 500 records its fifth consecutive day of gains, achieving a 5% increase for the week as tensions between the U.S. and China show signs of alleviation. The S&P 500 experienced an increase on Friday, marking its fifth consecutive session of gains and achieving a notable weekly rise, as investors chose to overlook the disappointing consumer sentiment data and ongoing concerns regarding inflation. The broad market index increased by 0.70%, concluding at 5,958.38, whereas the Nasdaq Composite rose by 0.52%, finishing at 19,211.10. The Dow Jones Industrial Average increased by 331.99 points, equivalent to 0.78%, concluding at 42,654.74. Friday’s advance positioned the 30-stock benchmark into positive territory for 2025.

During the week, the S&P 500 experienced a notable increase of 5.3%, while the Dow recorded a rise of 3.4%. The Nasdaq Composite surged by 7.2% this week. Technology stocks experienced a robust week. Shares of Nvidia experienced an increase of approximately 16%, whereas Meta Platforms saw a rise of 8%. Apple’s shares experienced a 6% increase, whereas Microsoft’s shares rose by 3%. The major averages experienced an uptick despite the University of Michigan’s consumer sentiment index registering its second-lowest level on record. Consumers anticipate a price increase of 7.3% over the coming year, an uptick from the 6.5% projected last month.

Stocks have made a robust recovery since U.S. and Chinese officials earlier this week reached a 90-day truce in their tariff measures, alleviating investors’ concerns about escalating global trade tensions and the associated risks to the economy. “Markets are repricing the stagflation risk right now — what was once the base case for folks who were sure that tariffs were going to shoot inflation skyward immediately, really hasn’t been supported in the data,” said Jamie Cox, managing partner at Harris Financial Group. “The U.S. consumer may express concerns, yet their spending behavior suggests otherwise. Consumption trumps all once you filter out all the noise.”

Wall Street is anticipating that greater clarity regarding trade matters will emerge in the upcoming weeks. President Donald Trump stated on Friday that his administration plans to dispatch letters to numerous countries outlining new tariff rates, potentially within the next two to three weeks. Those letters would substitute for trade negotiations with nations where the U.S. lacks the time to engage in meetings.