The S&P 500 edged up 0.4% on Friday, capping its eighth consecutive weekly gain and pulling within a fraction of a percent of its record high set in mid-May. The Dow Jones Industrial Average rose 294 points, or 0.6%, while the tech-heavy Nasdaq composite added 0.2%.
The gains extended a remarkable run for U.S. equities, which have now risen every week since late March — the longest winning streak since the autumn of 2023. The rally has been fueled in part by steadily retreating oil prices, even as the war in Iran continues to stoke geopolitical uncertainty.
On Friday, U.S. benchmark crude oil futures eased, giving markets a modest lift. The decline in energy costs has helped cool inflation expectations and provided some cover for the Federal Reserve, which remains focused on bringing consumer prices under control.
The bright session on Wall Street came despite a fresh reading on consumer confidence that underscored a deepening disconnect between financial markets and U.S. households. A preliminary survey of consumer sentiment released Friday showed households growing markedly more pessimistic, with expectations for the economy sliding to multi-month lows. The reading, widely tracked as a proxy for Main Street’s mood, highlighted how inflation at the grocery store and anxiety over the conflict in the Middle East continue to erode public morale even as stock portfolios swell.
Ross Stores was among the largest movers, its shares surging 8.1% after the off-price apparel and home goods chain reported quarterly results that easily beat analyst estimates. Ross CEO Jim Conroy said the retailer saw strong customer traffic through the three months and may have gotten a lift from households spending their tax refunds.
Estée Lauder shares jumped 11.9% after the cosmetics giant disclosed that it was no longer pursuing a potential merger with Spanish fragrance and beauty group Puig. The announcement removed a cloud of uncertainty that had hung over the stock.
The resilience in equities has left many analysts cautious. While falling oil prices and a still-low unemployment rate underpin corporate earnings, the souring mood of consumers could eventually weigh on the spending that accounts for roughly two-thirds of U.S. economic activity. The market’s focus now turns to a heavy slate of economic data and corporate earnings in the week ahead, which could test whether the rally has further to run.