Stocks Close Up as Inflation Concerns Diminish

Stock Market Performance: The S&P 500, Dow Jones, and Nasdaq 100 all closed higher on Friday, with the S&P reaching a 5-week high, driven by optimism about the economic outlook and supportive seasonal trends, particularly in semiconductor stocks.

Inflation and Economic Indicators: Benign inflation news contributed to stock gains, with the core PCE price index and consumer sentiment index showing positive results, while personal spending and income met expectations.

Corporate Earnings: The Q3 earnings season is concluding with 83% of S&P 500 companies exceeding forecasts, resulting in a 14.6% rise in earnings, significantly above the expected 7.2%.

Interest Rates and Bond Market: Rising bond yields were noted, with the 10-year T-note yield reaching a 2-week high, influenced by inflation expectations and a mixed performance in overseas markets.