(AP) — Stocks rose on Wall Street Friday and closed higher for the week, breaking a seven-week losing streak, the longest such stretch since 2001. The S&P 500 rose 2.5%, increasing its gain for the week to 6.6%. That’s the biggest weekly gain for the benchmark index since November 2020.

Technology stocks were a big factor pushing the market higher. That sent the Nasdaq composite up 3.3%. The Dow Jones Industrial Average rose 1.8%.

Retailers also made solid gains. The yield on the 10-year Treasury note, which helps set mortgage rates, slipped to 2.74%. U.S. crude oil prices rose.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

NEW YORK (AP) — Stocks rose in afternoon trading on Wall Street Friday, keeping the market on track for its first weekly gain after seven weeks of losses.

The S&P 500 rose 1.7% as of 2:13 p.m. Eastern and is headed for a 5.8% gain for the week. The Dow Jones Industrial Average rose 350 points, or 1.1%, to 32,987 and the Nasdaq rose 2.6%.

The gains were broad, led by technology stocks. Apple rose 3.3% and Microsoft rose 1.8%. Retailers also made solid gains as Wall Street continues reviewing the latest round of earnings to get a better sense of just how much pain rising inflation is inflicting on businesses and consumers.

Beauty products company Ulta Beauty surged 10.3% after raising its profit forecast for the year. Amazon rose 2%.

Investors received potentially encouraging news about inflation. The Commerce Department said that inflation rose 6.3% in April from a year earlier, the first slowdown since November 2020 and a sign that high prices may finally be moderating, at least for now.

The report was released as Wall Street looks for any signal that inflation could be easing, while trying to figure out just how low stocks might sink.
“At this point that’s all the market needs,” said Ross Mayfield, investment strategy analyst at Baird. “It’s definitely one of the signs you would want to see.”

The broader market has been in a slump for nearly two months as concerns about inflation and rising interest rates pile up. Investors were spooked last week by disappointing reports from key retailers, including Walmart and Target, which stoked fears about rising inflation hitting profit margins and crimping consumer spending.

Trading remained choppy throughout the week, though the market has mostly pushed higher, as retailers including Macy’s and Dollar General released encouraging earnings reports and financial updates.

Inflation is at a four-decade high and has been persistently squeezing businesses. Higher costs prompted companies to raise prices on everything from food to clothing to protect their margins and consumers remained resilient. Russia’s invasion of Ukraine worsened the inflation picture by pushing global energy and food prices even higher.

U.S. crude oil prices were relatively stable, but are up more than 50% in 2022. Wheat prices are up about 50% and corn prices are up 30% this year.

Supply chain problems at the heart of rising inflation were worsened in the wake of China’s lockdown for several major cities.

The extra inflation squeeze has made it even more difficult for businesses to offset costs and is seemingly prompting a shift in consumer spending away from expensive items and toward necessities. It has also raised concerns that the Federal Reserve may have an even more difficult time trying to temper the impact from inflation.

The Fed is aggressively raising interest rates to fight inflation, but investors are worried that it could potentially push the economy into a recession if it moves too aggressively.

The yield on the 10-year Treasury, which helps set mortgage rates, slipped to 2.74% from 2.75% late Thursday.

Disappointing financial updates and earnings weighed on several companies. Clothing retailer American Eagle fell 5.8% after reported weak first-quarter earnings.