U.S. stocks finish week at record highs as indices extend gains

U.S. stocks rose Friday, capping another record-setting week as major benchmarks finished the session on fresh highs for the second straight day. Investors were buoyed by corporate earnings and bets that the Federal Reserve could lower rates later this year, while inflation concerns kept gold in rally mode.

The S&P 500 rose 32.40 points, or 0.5%, to 6,664.36. The Dow Jones Industrial Average advanced 172.85 points, or 0.4%, to 46,315.27. The Nasdaq Composite gained 160.75 points, or 0.7%, to 22,631.48. The Russell 2000 index of smaller companies fell 18.93 points, or 0.8%, to 2,448.77. All three benchmarks closed at or near record levels, marking the second consecutive day of intraday highs.

For the week, the S&P 500 rose 80.07 points, or 1.2%. The Dow added 481.05 points, or 1%. The Nasdaq composite climbed 490.37 points, or 2.2%. The Russell 2000 gained 51.71 points, or 2.2% for the week. On the year, the performance remains broadly positive: the S&P 500 is up 782.73 points, or 13.3%; the Dow is up 3,771.05 points, or 8.9%; the Nasdaq has risen 3,320.68 points, or 17.2%; and the Russell 2000 is up 218.61 points, or 9.8%.

In company news, FedEx rose after delivering a stronger profit for the latest quarter than analysts expected, helping lift sentiment around the defense of industrials and transport stocks.

Gold prices extended their rally as investors priced in potential rate cuts and priced in continued inflation concerns. The move higher in bullion underscores a broad tilt toward assets viewed as hedges against inflation and a lower-for-longer-rate scenario.

In overseas trading, Japanese equities slid after the Bank of Japan said it would reduce its stock holdings, a move that investors interpreted as a step toward normalizing its extraordinary monetary stance. The development contributed to a softer tone in Tokyo and added to the global discussion about how central banks will balance growth with inflation in the months ahead.

The day’s moves come as traders weigh the trajectory of monetary policy against corporate earnings, economic data and geopolitical developments. With more earnings reports due in the coming weeks, investors are seeking clues about the sustainability of the current market rally and how much higher rates might be priced into valuations.

Overall, the week’s performance reinforces a message of cautious optimism: while the market has extended its record-setting run, volatility remains possible as traders digest a steady stream of earnings results and the evolving outlook for interest rates and inflation.