Wall Street closed higher on Friday, marking its fifth consecutive day of gains, as investors reacted positively to easing U.S.-China trade tensions despite concerning economic data. The S&P 500, Nasdaq, and Dow all posted strong weekly performances, driven by optimism from a 90-day tariff truce between Washington and Beijing.
The S&P 500 climbed 0.70% to 5,958.38, the Dow rose 0.78% to 42,654.74, and the Nasdaq added 0.52% to close at 19,211.10. For the week, the S&P 500 jumped 5.3%, the Nasdaq surged 7.2%, and the Dow gained 3.4%.
However, consumer sentiment slipped. The University of Michigan’s index showed a decline in May, while one-year inflation expectations jumped to 7.3% from 6.5%. Despite the data, investors remained focused on the trade de-escalation and potential monetary policy shifts.
In extended trading, ETFs tracking the S&P 500 and Nasdaq dipped about 1% after Moody’s downgraded the U.S. credit rating, citing rising debt and interest payments. Market strategist Lindsey Bell noted that while the rally reflects optimism, volatility could persist due to tariff and economic uncertainties.
Energy was the only sector in the red (-0.18%), while healthcare led gains (+1.96%), buoyed by a 6.4% rebound in UnitedHealth Group after recent losses. Applied Materials fell 5.3% after missing revenue estimates, while Charter Communications rose 1.8% on news of a $21.9 billion deal to acquire Cox Communications. Verizon shares climbed 1.7% after the FCC approved its $20 billion acquisition of Frontier Communications.
Advancing stocks outpaced decliners on both the NYSE and Nasdaq, with robust trading volume totaling 17.61 billion shares—above the 20-session average.
Investors remain cautiously optimistic, awaiting further clarity on tariffs and U.S. tax policy amid political roadblocks in Congress.


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