Wall St. scores first weekly gain in four weeks

STORY: U.S. stocks rallied on Friday, capping off their first weekly gain in four weeks as investors went on a buying spree and shrugged off concerns about the economic outlook.

The Dow rose 1.2%, the S&P gained 1.5%, while Nasdaq jumped more than 2%.

Investors are awaiting August's consumer prices report – or CPI, out on Tuesday - for signs that inflation may be easing.

Wells Fargo economists are predicting just that, as they expect headline inflation will log its steepest monthly decline since the peak of the health crisis in April of 2020.

Christian Ledoux, director of investment research at CAPTRUST, says that even a flat reading for consumer prices would be a good sign for the Federal Reserve as it aims for its goal of 2 percent inflation.

“Last month we had a flat month-to-month – I’m sure everyone heard Biden say that we had no inflation on a month-to-month basis last month – and it would be great for all of us if we saw a slight dip on a month-to-month basis. But that’s not really necessary to see the year-to-year change get better. So if we just stayed flat here for a while, we would actually see 2% some time early next year.”

Tech and growth stocks led the gains Friday, with Amazon and Microsoft both ending higher.

Shares of Kroger jumped after the grocer raised its annual forecast.

And luxury handbag maker Tapestry – owner of Coach and Kate Spade - also rose after the company said it expects revenue of $8 billion by fiscal year 2025.