the dow gained 350 points on friday unwinding some of its losses from a fiveday streak of declines as the latest batch of us economic data offered healthy readings on the state of us consumption and manufacturing stocks shrugged off signs of strongerthanexpected inflation in april which had sent shortdated treasury yields higher as expectations rose for another interestrate hike from the federal reserve in june on thursday the nasdaq composite posted its biggest gain in three weeks thanks to a historic rally in shares of chipmaking giant nvidia corp the dow jones industrial average meanwhile finished lower for the fifth straight session a raft of encouraging us economic data helped catapult us stocks higher early friday as the bluechip dow unwound some of its losses from earlier in the week that had been driven in part by recession fears pce data also showed consumer spending sprang back to life in april rising 08 the largest gain in three months surpassing expectations for a 05 increase as americans bought more cars and spent more on services durablegoods data showed orders for us manufactured goods jumped 11 in april the gain was largely driven by military spending but business investment rose sharply as well at the same time the pce price index showed core inflation rose 04 in april more than the 03 increase that economists had expected core inflation strips out volatile food and energy prices the yearly increase in prices rose to 44 from 42 in the prior month but traders were willing to overlook slightly hotterthanexpected inflation due to signs that the us economy looks robust updated gdp data released earlier this week showed the us economy grew by 13 during the first quarter more robust than previous estimates had suggested yields on shortdated treasury yields climbed on friday thanks to the inflation data with the 2year yield bxtmubmusd02y up 8 basis points at 4580 fed funds futures traders now see a 54 chance of a june hike following fridays inflation data according to the cmes fedwatch tool rubeela farooqi chief us economist at high frequency economics noted that inflation appeared to be moving in the wrong direction at the start of the second quarter stocks also continued to benefit from follow through from a surge in technology stocks on thursday that was driven by nvidias nvda optimistic artificial intelligencefueled outlook for sales in the second quarter nvidias shares also rose more than 24 with the company adding nearly 200 billion to its market capitalization one of the biggest oneday increases in the history of corporate america on friday another microchip maker marvell technology mrvl was rising after saying ai has emerged as a growth driver reports suggesting that congress was close to a deal to raise the us debt ceiling also helped sentiment though house republicans have already left washington ahead of the us memorial day holiday weekend while treasury secretary janet yellen says the us could run out of money as early as june 1 other projections estimate the federal government may have until the middle of the month i think well all be able to exhale by midjune although it will likely be an increasingly volatile market environment between now and then said kristina hooper chief global market strategist at invesco once that drama recedes i think all eyes will be back on central banks this content was created by marketwatch which is operated by dow jones  co marketwatch is published independently from dow jones newswires and the wall street journal