U.S. Stocks Rise for Eighth Straight Week as Consumer Sentiment Hits Record Low

U.S. stocks rose on Friday, completing their eighth straight winning week, the longest such streak since 2023. The S&P 500 added 0.4 percent, the Dow Jones Industrial Average rose 294 points or 0.6 percent, and the Nasdaq composite gained 0.2 percent.

The gains occurred even as a University of Michigan survey showed consumer sentiment falling to a record low, below the previous bottom reached in 2022. Lower-income households and Republicans both recorded larger drops in the survey.

Stores rose 8.1 percent after reporting quarterly profit and revenue above analyst expectations. The company's CEO said strong customer traffic may have been supported by households spending tax refunds. Estee Lauder shares jumped 11.9 percent after the company said it was no longer considering a merger with Puig.

Workday gained 5.2 percent and Zoom Communications rose 9.2 percent after both reported quarterly profits above expectations.

The University of Michigan survey showed consumers now expect 4.8 percent inflation over the next 12 months, up from 4.7 percent last month, and 3.9 percent over the longer term, up from 3.5 percent. The survey linked the shift to higher oil prices tied to the war with Iran and the closure of the Strait of Hormuz.

Brent crude for August delivery settled at $100.21 per barrel, up 0.7 percent. The 10-year Treasury yield edged down to 4.56 percent from 4.57 percent the previous day but remains above the 3.97 percent level recorded before the war. Traders have removed expectations that the Federal Reserve will cut interest rates later this year.

Overseas markets rose, with Japan's Nikkei 225 climbing 2.7 percent to a record after April inflation came in at 1.4 percent.