U.S. stocks closed sharply higher on Friday, with major indexes ending up more than 1% as investors grew less concerned over the prospect of the Federal Reserve becoming more aggressive in raising interest rates in order to combat inflation. The Dow Jones Industrial Average rose 1.4%, or 349 points, to 25,312. The S&P 500 added 43 points, or 1.6%, to 2,747. The Nasdaq Composite Index climbed 127 points, or 1.8%, to 7,337. Both the Dow and the S&P posted their second straight daily gain, while the Nasdaq snapped a four-day losing streak. All three posted a second straight weekly advance; the Dow rose 0.4% over the week while the S&P added 0.6% and the Nasdaq rose 1.4%. Recent trading has been driven by concerns that inflation could be returning to the market, and that the Federal Reserve may have to become more aggressive to combat such a scenario. In its semiannual monetary policy report to Congress, the Fed signaled that it saw broad improvement in the U.S. economy, and while it pointed to a pickup in inflation toward the end of last year, it didn’t suggest that a rise in prices warranted more aggressive policy action. That helped support equity prices in afternoon trading. The day’s gains were broad, with all 11 primary S&P 500 sectors ending higher on the day. Technology shares were among the biggest percentage gainers, up 2.2%, while energy rose 2.2%, supported by a 1.2% increase in the price of crude oil. In company news, HP Inc. rose 3.5% after stronger-than-expected results, while Hewlett Packard Enterprise Co. also rallied in the wake of its results. The stock closed 10.5% higher.
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