US equities rose Friday as a rally fueled by lighter-than-expected inflation data this week helped equity markets post their longest streak of gains since November 2021.
Tech stocks were again the winners, with the Nasdaq rising 2.1%, moving above 13,000 for the first time since April 25. The S&P 500 rose 1.7% as the benchmark index posted a weekly gain for the fourth consecutive week, and the Dow Jones Industrial Average rose 420. points, or about 1.3%.
Shares of Apple (AAPL) gained 2% after a Bloomberg News report that indicated the tech giant expects to support iPhone sales in 2022 despite a market slowdown. The company expects to assemble a total of about 220 million iPhones this year, according to Bloomberg, citing people familiar with the matter. Apple’s sales and production expectations are generally a closely guarded secret.
Electric vehicle manufacturer Rivian Automotive (RIVN) was on hold after the company reported a larger-than-expected loss for the second quarter on Thursday, but maintained its production outlook for the remainder of the year. Shares closed slightly lower after taking losses from a sharper decline earlier in the session.
Economic data in recent days has reassured investors that inflationary pressures across the economy are starting to cool after a steady pace since early 2021. The Producer Price Index (PPI) on Thursday showed prices fell 0.5% relative to the previous month compared to expectations of an increase of 0.2%. On Wednesday, the Consumer Price Index (CPI) showed that prices remained stable throughout the month, rising at a less than expected 8.5% per year.
Echoing lighter prints for consumer and producer prices, a reading of U.S. import prices released Friday reflected their first seven-month decline in July, according to Labor Department data. Import prices fell by a better-than-expected 1.4% last month, after rising 0.3% in June, the biggest monthly decline since April 2020.
“The fact that we are starting to see energy prices fall may be a sign of what else is to come for other inflation indicators,” iCapital Network Chief Investment Strategist Anastasia Amoroso told Yahoo Finance Live. “We’re starting to get rid of this inflation problem, and that’s a big catalyst for the markets.”
CPI data on Wednesday showed the gasoline index fell 7.7% month-on-month in July – the biggest drop since April 2020 – as gas prices have fallen over the past 59 days to fall below the level for the first time since Thursday March. to dive the $4 per gallon. data from AAA showed.
Elsewhere in economics releases, the August preliminary reading from the University of Michigan on the consumer confidence index rose from a record low earlier this summer to 55.1 last month. The figure stood at 51.5 in the previous month and hit a record low of 50 in June.
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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