U.S. stocks edged higher Friday amid renewed confidence in the global economic expansion.
The S&P 500 ticked up 0.2% a day after the broad stocks gauge posted a record closing high for the 30th time in 2021. The Dow Jones Industrial Average rose 0.6% and the technology-heavy Nasdaq Composite Index advanced 0.2%.
Stocks have bounced back, pushing the S&P 500 up 2.6% for the week, after stumbling when the Federal Reserve signaled a more hawkish stance on rising inflation last week. Fueling the gains, investors say, are data signaling a fresh acceleration in the world economy coupled with the prospect of additional government spending in the U.S. and Europe.
“We are still in a phase where we’re seeing the activity data still accelerate,” said Hani Redha, a fund manager at PineBridge Investments, pointing to surveys showing eurozone business activity is growing at the fastest pace in 15 years.