By Yasin Ebrahim

Investing.com — The S&P 500 jumped Friday, as data showing easing inflation pressures helped tech build on recent momentum, keeping the broader market in position to snap a seven-week losing streak.

They rose by 2% and gained 1.5% (477 points), respectively. The was also up 2.9%.

Inflation in the twelve months to April was slower than 3.2% in March’s core personal consumption expenditures price index (or PCE) which excludes energy.

Inflation is slowing, but data showing that consumers are still spending resiliently has renewed investor optimism after mixed quarterly results were reported by retailers.

However, economists warned that although strong spending will keep the economy healthy, it is likely that inflation will struggle to stabilize its pace. This would continue to put pressure on Fed officials to keep raising rates.

“In response, the Fed will have to more aggressively rein in demand to align with a supply-constrained economy,” Diane Swonk at Grant Thornton said in a note.

According to the latest quarter results, the picture for consumers continues to be mixed. Those at the bottom end of income are being hit by increasing cost pressures.

Gap (NYSE 🙂 announced that it missed analyst forecasts. It also painted a grim picture for next year after reducing growth guidance. The shares increased by more than 3 percent after it cut its early-day losses.

Gap “suffered from inventory imbalances along with having exposure to the lower income consumer,” Deutsche Bank said in a note after cutting its price target on the retailer to $12 from $17 a share.

Ulta Beauty (NASDAQ) meanwhile raised its outlook for full-year after reporting it had surpassed Wall Street estimates. This sent its shares up more than 11%.

“We believe ULTA has set an achievable (if not beatable) guidance following a strong 1Q’22 results,” UBS said.

Tech also looks poised for seven weeks without losses and has continued to gain, led Apple (NASDAQ;) and Google, as well as strong performance in the chip stocks.

Marvell Technology (NASDAQ:) reported that beat analysts’ forecasts on both the top and bottom lines as growing demand for data centers, 5G and electric vehicles bolstered growth. Its stock price rose by more than 6%