U.S. stocks rose Friday after the Federal Reserve’s preferred measure of inflation for April proved in line with market expectations, with the smallest increase in a year and a half.

How are stock-index futures trading?

Stocks rallied sharply on Thursday and all three indexes are looking at strong gains for the week after the S&P 500 came within a whisker of falling into a bear market. The Dow was on track to break a streak of eight weekly losses, its longest since 1932, according to Dow Jones Market Data, while the S&P 500 and Nasdaq Composite were set to end a stretch of seven straight weekly falls.

What’s driving the markets?

The personal consumption expenditure index rose just 0.2% in April for its smallest monthly increase in a year and a half, due largely to a decline in gas prices which have subsequently rebounded, though there were other hints that a surge in inflation might be abating.

The rate of core inflation in the past year, the Fed’s preferred measure, slowed…

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