NEW YORK (AP) — The split between Wall Street and most U.S. households grew even wider Friday, as U.S. stocks rose toward the finish of an eighth straight winning week, their longest such streak since 2023. That's even though a survey showed on the same day that U.S. consumers are feeling worse about the economy.
The S&P 500 added 0.6% and pulled closer to its all-time high set in the middle of last week. The Dow Jones Industrial Average was up 328 points, or 0.7%, as of 11:15 a.m. Eastern time, and the Nasdaq composite was 0.6% higher.
Ross Stores climbed 6.6% after the off-price retailer reported profit and revenue for the latest quarter that easily cleared analysts’ expectations. CEO Jim Conroy said it saw strong customer traffic through the three months, and the company may have benefited from households spending their tax refunds.
Estee Lauder jumped 9.3% after saying it was no longer considering a possible merger with Puig, the Spanish fragrance and beauty products company.
Workday rose 3.8%, and Zoom Communications jumped 11.9% after both delivered better profit reports for the latest quarter than analysts expected.
They’re the latest companies to top analysts’ expectations for profits for the start of 2026. And the cavalcade of such reports has helped U.S. stocks remain near their records. Stock prices tend to follow the path of corporate profits over the long term.
The strength is coming even after a survey of U.S. consumers by the University of Michigan found sentiment fell to a record low, piercing below its bottom in 2022 when inflation peaked above 9%. Households are feeling worried about how bad inflation is now because of expensive oil created by the war with Iran.
U.S. consumers are forecasting inflation will worsen to 4.8% in the coming 12 months, up from a forecast of 4.7% last month, according to the survey. In the longer run, their forecasts for inflation jumped to 3.9% from 3.5% last month. Such rising expectations are a concern for economists because they can drive behavior that creates a vicious cycle worsening inflation.
Sentiment dropped most for lower-income consumers, and it fell for Republicans as well, according to the survey.
Helping to keep uncertainty high were continued swings for oil prices on Friday. They yo-yoed through the week on uncertainty about when the United States and Iran may find a deal to reopen the Strait of Hormuz, whose closure has prevented oil tankers from exiting the Persian Gulf and delivering crude to customers worldwide.
Source: WPLG
