Dow Soars 330 Points While S&P 500 Flexes Its Bullish Muscles—Wall Street Plays Its Greatest Hits Again

Traders high-fived their Bloomberg terminals as the Dow surged past resistance levels like a caffeinated bull. Meanwhile, the S&P 500 wrapped up its strongest week since the last time everyone forgot about inflation.

Another day, another liquidity-fueled rally—because clearly, the Fed’s balance sheet needs more ’assets’ to unwind later. Active verbs only? Try: Markets ignore fundamentals, algorithms chase momentum, and your 401(k) still won’t retire you.

Why did the markes go up? 

Markets rallied earlier this week after U.S. and Chinese officials agreed to a 90-day pause on new tariffs, easing fears of escalating trade friction. Tech stocks led the charge, with Nvidia up more than 15%, Meta up 7%, and Apple and Microsoft each logging notable gains.

But Friday’s rally lost momentum after the University of Michigan’s consumer sentiment index dropped to 50.8—its second-lowest reading ever. Inflation expectations for the next year surged to 7.8%, the highest since 1981.

Still, some analysts downplayed stagflation fears. “Markets are repricing the stagflation risk right now,” said Jamie Cox of Harris Financial Group, noting that consumer spending remains strong despite inflation concerns.

President Donald TRUMP added uncertainty by signaling his administration would soon send letters to countries detailing new tariff rates, replacing some negotiations due to limited bandwidth.

Despite the mixed signals, Wall Street ended the week on a high note, with the S&P 500 logging a five-day winning streak and recouping its year-to-date losses. Investors now turn to upcoming trade moves and inflation data for the next catalyst.