US stocks soared on Friday as a recovery fueled by lighter-than-expected inflation data this week helped equity markets post their longest winning streak since November 2021 .
Tech stocks led the gains again, with the Nasdaq up 2.1% to close above 13,000 for the first time since April 25. The S&P 500 rose 1.7% as the benchmark index posted a fourth straight weekly gain and the Dow Jones Industrial Average rose 420. points, or about 1.3%.
apple (AAPL) shares gained 2% following a Bloomberg News report this indicated that the tech giant expects to maintain iPhone sales in 2022 despite the market slowdown. The company expects to assemble roughly 220 million iPhones in total this year, according to Bloomberg, which cited people familiar with the matter. Apple’s sales and production expectations are usually a closely guarded secret.
Electric vehicle manufacturer Rivian Automotive (RIVN) was on watch after Thursday the company reported a wider than expected loss for the second quarter but maintained its production outlook for the rest of the year. Shares closed slightly lower after paring losses from a sharper drop earlier in the session.
An employee arranges Apple iPhones as customers shop at the Apple Store on 5th Avenue shortly after the new products went on sale in Manhattan, New York City, New York, US, on 18 March 2022. REUTERS/Mike Segar
Economic data in recent days have reassured investors that inflationary pressures are beginning to cool across the economy after rising at a steady pace since early 2021. The producer price index (PPI ) on Thursday showed prices fell 0.5% from the previous month compared with expectations for a 0.2% increase. On Wednesday, the Consumer Price Index (CPI) showed that prices were flat for the month and rose by a less than expected 8.5% year-on-year.
After lighter prints for consumer and producer prices, a reading of US import prices released on Friday reflected their first drop in seven months in July, according to data from the Labor Department. Import prices fell a better-than-expected 1.4% last month after rising 0.3% in June, the biggest monthly drop since April 2020.
“The fact that we’re starting to see energy prices come down, that could be a sign of more to come for other inflation indicators,” said iCapital Network Chief Investment Strategist Anastasia Amoroso, on Yahoo Finance Live. “We’re starting to eliminate that inflation problem, and that’s a big catalyst for the markets.”
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The das showed AAA data.
Elsewhere in the economic publications, the University of Michigan’s August preliminary reading of its consumer sentiment index rose last month from a record low earlier in the summer at a reading of 55, 1. The figure stood at 51.5 the previous month and hit an all-time low of 50 in June.
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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