Retail strength lifts major indices higher on positive Friday session

Berkshire Hathaway’s strategic move in healthcare stocks provided the initial spark for Friday’s market rally. The conglomerate’s acquisition of 5 million UnitedHealth shares boosted premarket sentiment, triggering a notable surge in the healthcare insurance company’s stock price and setting a bullish tone for the trading session ahead.

Building on this momentum, U.S. stock markets delivered a solid close as investors embraced fresh economic data. The Dow Jones Industrial Average posted a 0.6% gain with a 250-point climb, while the S&P 500 advanced 0.3%, demonstrating broad-based strength. The Nasdaq Composite remained relatively flat, but the overall positive friday session signaled renewed confidence among market participants.

Consumer spending shows resilience amid economic concerns

The catalyst behind Friday’s rally centered on robust retail activity metrics. July retail sales climbed 0.5%, matching analyst expectations precisely. When excluding automobile purchases, sales still managed a 0.3% increase, also aligning with forecasts. These figures proved especially meaningful as the prior month’s readings underwent upward revision to 0.9%, painting a picture of steady consumer spending that defies lingering U.S. economic headwinds.

Market watchers viewed the positive friday performance as validation that American consumers remain resilient. Stock indexes responded decisively, with both the S&P 500 and Dow Jones Industrial Average pushing toward record territory following the data release.

Weekly performance reflects investor optimism

The broader weekly trend reinforced Friday’s strength. Over the past seven trading days, the S&P 500 and Nasdaq each accumulated gains exceeding 1%, while the Dow Jones Industrial Average surged ahead with a 2% weekly advance. This consistent upward trajectory, fueled by technology sector strength and easing inflation pressures from earlier in the week, suggests market participants are adopting a more constructive stance on economic fundamentals.

Earlier concerns stemming from July’s producer price index—which initially spooked traders with inflation readings running hotter than anticipated—were ultimately overshadowed by the retail sales confirmation of steady demand. With import prices climbing amid elevated consumer goods costs, the S&P 500 continues its push to break above all-time highs, supported by technology stock performance and the moderating consumer price inflation narrative that emerged earlier this week.