Wall Street ended the week on a positive note Friday as a cooler-than-expected Producer Price Index reading gave investors fresh confidence that inflation is continuing its gradual descent. The PPI fell 0.1% in April on a monthly basis, below the flat reading economists had forecast. That followed Thursday's encouraging CPI print, and together the two reports painted a picture of easing price pressures that traders were eager to act on.
The Nasdaq led the charge, climbing 1.3% as technology and semiconductor names rallied hard into the close. Nvidia was the standout, gaining 4.6% on a wave of analyst optimism and renewed enthusiasm around AI infrastructure spending. Mega-cap tech broadly participated in the move, with Microsoft, Meta, and Alphabet each adding between 1% and 2%.
The S&P 500 gained 0.9% and the Dow rose 0.6%, though the blue-chip index was held back by weakness in healthcare. CVS Health was the session's notable decliner, sliding 3.8% after slashing its 2026 profit outlook amid persistent cost headwinds in its insurance business. The move weighed on the broader healthcare sector.
With two consecutive soft inflation readings in the books, rate-cut expectations for the second half of 2026 firmed up noticeably. Fed funds futures now price in roughly two cuts before year-end. The VIX eased to 17.4, reflecting a calmer mood heading into the weekend.