Stocks soared higher on Friday as Wall Street looked to end the week on a positive note following in-line inflation data and widespread sentiment that the Federal Reserve will begin interest rate cuts in the near-term. The Dow Jones Industrial Average jumped over 650 points, while the S&P 500 Index and Nasdaq Composite rose about 1.1% and 1%, respectively.

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

S&P 500 Index (SPY  ): +1.11% or +59.88 points to 5,459.10

Dow Jones Industrial Average (DIA  ): +1.64% or +654.27 points to 40,589.34

Nasdaq Composite Index (QQQ  ): +1.03% or +176.16 points to 17,357.88

Moving Markets:

The Personal Consumption Expenditures price index eased slightly year-over-year, boosting investor optimism that the Fed will issue an interest rate cut in September.

The Fed's key inflation gauge increase 2.5% from a year ago and 0.1% month-to-month, the Commerce Department reported Friday. May's annual again was 2.6%, while its monthly print was unchanged. Core inflation, which excludes food and energy prices, rose 0.2% on the month and 2.6% annually, both also coming in-line with expectations.

"Overall, it's been a good week for the Fed. The economy appears to be on solid ground, the PCE inflation essentially remained steady," said Chris Larkin, managing director of trading and investing at E-Trade Morgan Stanley, quoted by CNBC. "But a rate cut next week remains a longshot. And while there's plenty of time for the economic picture to change before the September FOMC meeting, the numbers have been trending in the Fed's direction."

Other Economic News:

Consumer Sentiment ticked slightly lower in July, the University of Michigan's Survey of Consumers showed on Friday, but inflation outlooks decreased to its lowest level in more than three years. Headline sentiment dipped to 66.4, coming in ahead of economist estimates but below June's final print of 68.2.

For outlooks, the one-year outlook showed the expectations for 2.9%, marking its lowest level since December 2020, while the five-year outlook remained at 3% for the fourth consecutive month.

"Sentiment has lifted 33% above the June 2022 historic low, but it remains guarded as high prices continue to drag down attitudes, particularly for those with lower incomes," said Joanne Hsu, director of the Surveys of Consumers, in a statement. "Labor market expectations remain relatively stable, providing continued support to consumer spending. However, continued election uncertainty is likely to generate volatility in economic attitudes in the months ahead."

On the Earnings Front:

3M (MMM  ) shares jumped over 20% after the consumer and commercial products market reported strong second-quarter earnings and raised its outlook on Friday. This was the first quarter results under CEO Bill Brown, who succeeded Mike Roman on May 1. The company now expects its full-year adjusted earnings per share to range from $7.00 to $7.30, up from its previous estimates of $6.80 to $7.30. This was the first

Colgate-Palmolive (CL  ) also topped Wall Street expectations on Friday, with the consumer products giant citing a "healthy balance" of volume growth and higher prices as some of the key drivers behind its second-quarter results. The company also raised its full-year organic sales growth outlook to a range of 6% to 8%, up from its previous forecast of 5% to 7%. Net sales are still expected to increase by 2% to 5% in 2024.

Bristol Myers Squibb (BMY  ) also topped expectations for second-quarter earnings and revenue on Friday and raised its full-year guidance on Friday. The pharmaceutical giant now expects its full-year revenue to increase in the "upper end" of the low single-digit range, compared with its previous guidance of low single-digit growth. Its full-year adjusted earnings guidance was also raised to a range of $0.60 to $0.90 per share, up from $0.40 to $0.70 per share.