Wall Street stocks surged in morning trading on Friday, keeping the market in line for its first weekly gain after seven weeks of losses.

The S&P 500 rose 1.49% to 4,118.48 as of 10:13 a.m. Eastern Time Zone and is on track for a 5.6% gain for the week. The Dow Jones Industrial Average rose 242.11 points or 0.74% to 32,879. The Nasdaq rose 252.66 points or 2.15% to 11,993.31.

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Technology stocks led the broad gains. Apple rose 3.3% and Microsoft rose 2.2%. Retailers also made solid gains as Wall Street continues reviewing the latest round of financial reports to get a better idea of just how rising inflation is impacting businesses and consumers. Beauty products company Ulta Beauty rallied 11% after raising its profit outlook for the year. Amazon rose 2.8%.

European exchanges were higher and Asian markets closed higher overnight.

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The yield on the 10-year Treasury, which helps set mortgage rates, slipped to 2.72% from 2.75% late Thursday.

Disappointing financial reports and earnings weighed on several companies. Gap lost 2.3% after slashing its profit forecast for the year.

The broader market has been declining for nearly two months amid concerns about inflation and rising interest. Investors were upset last week by disappointing reports from key retailers, including Walmart and Target, which cited fears about rising inflation hitting profit margins and crimping consumer spending.

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Although trading remained volatile throughout the week, the market has mostly rallied as retailers including Macy’s and Dollar General released encouraging earnings reports and financial updates.

Inflation is at its highest level in four decades and has been persistently squeezing businesses.

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In response to rising costs, companies raised prices on everything from food to clothing to protect their margins, and consumers remained resilient. The Russia-Ukraine war worsened the inflation picture by pushing global energy and food prices even higher.

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

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Supply chain issues at the heart of rising inflation were worsened in the light of China’s lockdown of several major cities.

The extra inflationary pressure 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 worries that the Federal Reserve may have an even more difficult time in a bid to contain the impact of inflation.

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