The S&P 500 index rose 1.5% last week, marking the fourth straight weekly gain, as investors were encouraged by signs of easing consumer price inflation.
The benchmark ended at 5,303.17 on Friday, two days after reaching a record close. The Dow Jones Industrial Average closed above 40,000 for the first time ever on Friday.
The index is up 5.3% for the month to date and has climbed 11% this year.
Data released last week showed the US seasonally adjusted consumer price index, a measure of inflation, rose by 0.3% in April, below expectations for a 0.4% increase and following a 0.4% gain in March. Core CPI, which excludes food and energy prices, also rose by 0.3%, right on the consensus estimate and following a 0.4% gain in March.
The US producer price index increased 0.5% in April on a seasonally adjusted basis, which was more than the 0.3% rise expected and compared with a downwardly revised 0.1% decline in March. Still, equities rose as Federal Reserve Chair Jerome Powell said the US economy is performing “very well” with a strong labor market and rising employment and wages, though with some signs of “gradual” cooling.
All but two of the S&P 500 index’s 11 sectors rose for the week. The advances were led by technology, which climbed 2.9%, and real estate, which rose 2.5%. Other sectors up by more than 1% included health care, communication services, financials and utilities.
The two declining sectors were industrials, down 0.4%, and consumer discretionary, easing 0.1%.
This week, April existing home sales are due on Wednesday, followed by April new home sales on Thursday. Other data will include April durable goods orders and May consumer sentiment on Friday.
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