Dow rises, putting index on track for 8-day winning streak: Live updates

The Dow Jones Industrial Average rose on Friday, putting the 30-stock index on track for yet another winning session.

The Dow rose 102 points, or 0.3%. The S&P 500 climbed about 0.1%, while the Nasdaq Composite shed 0.1%.

3M was one of the Dow’s best performers, as shares of the manufacturer rose about 1.1% on the back of an upgrade from HSBC.

Consumer sentiment data released Friday morning reflected a big uptick in inflation expectations, throwing some cold water on the market. The preliminary May reading for the University of Michigan’s consumer sentiment index came in at 67.4, far below a Dow Jones estimate of 76 and marking its lowest reading in about six months.

The data could indicate that “inflation is not moving in the right direction either,” said Brian Nick, senior investment strategist at the Macro Institute. “You get hit from both sides — people think things are worse than the economy and they’re going to stay worse, and they’re worried about inflation. And that’s not a happy formula for stocks or bonds.”

The Federal Reserve’s rate-cutting path will be further influenced by how much of a slowdown is seen in consumer spending and in hiring, Nick added. “If those things don’t seem like they’re completely falling off the cliff, that’s good enough news for markets that are just kind of starved for rate cuts,” he said.

Investors have been more optimistic lately after the Federal Reserve indicated the next move is unlikely to be a hike, pointing to a cap on interest rates that could be bullish for equities. A strong earnings season, as well as some softer labor data, have also bolstered confidence in a rate cut, supporting the stock outlook.

Stocks are on pace for a winning week. The Dow has gained 2.2%. The S&P 500 and the Nasdaq were higher by 1.9% and 1.3%, respectively.