U.S. Stocks Surge Despite Weekly Losses Amid Inflation and Tariff Concerns

U.S. stocks closed higher on Friday as markets digested inflation data deemed mostly in line with expectations. However, for the week, the S&P 500 and Nasdaq marked losses, ending their three-week streaks of gains.

The Commerce Department's report showed personal income and spending outperformed, contradicting the expectations of moderate inflation. Market stakeholders are evaluating the implications of potential Federal Reserve rate cuts against a backdrop of a strengthening economy.

Investors are now preparing for volatility as quarter-end approaches and earnings season launches mid-October. Meanwhile, Trump's new tariffs on trucks and pharmaceutical products have stirred market sectors, notably affecting Paccar and Eli Lilly. The week closed with anticipation for next week's labor market data and the looming threat of a government shutdown adding to market uncertainty.

(With inputs from agencies.)