US stocks rose with the S&P 500 and Nasdaq Composite closing higher, supported by strong economic data and positive earnings reports that show American consumers are still spending.
Wall Street recovered after falling following President Donald Trump's tariff announcement in early April.
This week will provide clues to support gains, with the focus on key economic reports and the start of the second-quarter earnings season.
Ameriprise Financial Chief Market Strategist Anthony Saglimbene said economic data and corporate earnings reflected economic resilience, which supported the market's rise this week.
The S&P 500 index rose 0.54% to 33.66 points, the Dow Jones rose 0.52% to 229.71 points, while the technology-focused Nasdaq rose 0.74% to 153.78 points.
In other news, US retail sales rose in June, pointing to a recovery in the economy and consumer confidence, despite mixed inflation data – producer prices were flat and consumer inflation rose.
Investors will be watching the impact of Trump’s tariffs on the economy, while the Federal Reserve is expected to delay interest rate cuts until the inflationary impact of import taxes is clearer.
Meanwhile, PepsiCo shares jumped 7.5%, supported by demand for energy drinks and healthy sodas, despite a decline in annual core profit. United Airlines shares rose 3.1% on strong demand since early July.
