Stocks rose on Friday, propelling the S&P 500 to trade above 4,800 and it's all-time closing high of 4,796.56 from January 2022. The broader market index rose 1.2% on the day, while the Dow Jones Industrial Average rallied nearly 400 points and the Nasdaq Composite rose 1.7%.

Here's how the market settled to close out the week:

S&P 500 Index (SPY  ): +1.23% or +58.87 points to 4,839.81

Dow Jones Industrial Average (DIA  ): +1.05% or +395.19 points to 37,863.80

Nasdaq Composite Index (QQQ  ): +1.70% or +255.32 points to 15,310.97

In the news, Bank of America said in a research note on Friday that this week's stronger-than-expected retail sales data is expected to have little impact on the Federal Reserve's interest rates decisions in the coming months.

"The bottom line for us? Outsized gains in December retail sales were more noise than news," the firm wrote. "Consumer spending may be healthy, but it's not surging or slumping, and we don't think the report says much about the Fed's ability to cut rates beginning in March as we expect."

In economic news, the University of Michigan's Consumer Survey of Consumers registered a reading of 78.8 for January on Friday, marking the highest level since July 2021 -- increasing 21.4% from a year ago. Survey director Joanne Hsu also noted that sentiment showed its largest increase in more than 30 years on a two-month basis.

"Consumer views were supported by confidence that inflation has turned a corner and strengthening income expectations," Hsu said in a press release. "Democrats and Republicans alike showed their most favorable readings since summer of 2021. Sentiment has now risen nearly 60% above the all-time low measured in June of 2022 and is likely to provide some positive momentum for the economy."

Separately, sales of previously owns U.S. homes declined 1% month-to-month in December toa seasonally adjusted annualized rate of 3.78 million units, according to the National Association of Realtors (NAR) report on Friday. Moreover, sales fell 6.2% year-over-year, marking the lowest level since August 2020, while full-year sales totaled 4.09 million units -- the lowest total since 1995.

"The latest month's sales look to be the bottom before inevitably turning higher in the new year," said Lawrence Yun, chief economist at NAR, in a release. "Mortgage rates are meaningfully lower compared to just two months ago, and more inventory is expected to appear on the market in upcoming months."

In single-stock news, Spirit Airlines (SAVE  ) shares rose on Friday after the budget airline raised its fourth-quarter financial forecast and plans to refinance its debt following a U.S. judge's ruling to block JetBlue Airways' (JBLU  ) bid to purchase the airline. Spirit said in a filing that it expects quarterly revenue of about $1.3 billion, the high end of its previous forecast, due to strong bookings, as well as lower fuel costs and other expenses.

Meta Platforms (META  ) is reportedly buying billions of dollars on Nvidia's (NVDA  ) artificial intelligence chips as part of its effort to build a "massive compute infrastructure" to support its AI research and projects, according to an Instagram Reels post by CEO Mark Zuckerberg on Thursday. Zuckerberg added that Meta's infrastructure will contain "almost 600,000 H100 equivalents of compute," when including other graphics processing units.

Looking ahead, market participants will react to earnings reports from companies including Netflix (NFLX  ), Tesla (TSLA  ), Johnson & Johnson (JNJ  ), Procter & Gamble (PG  ), Verizon (VZ  ), IBM (IBM  ), Intel (INTC  ), Comcast (CMCSA  ), and AT&T (T  ), as well as December's personal consumer expenditures reading due out on Friday.