The Dow Jones Industrial Average surged by 654 points, or 1.6%, marking its fourth consecutive weekly win.

Support for the rally came from positive quarterly earnings reports and cooling inflation data, raising expectations for a potential interest rate cut.

US economic data released at the end of the week suggested that the Federal Reserve may be preparing to cut interest rates in September.

The S&P 500 rose by 1.1%, marking its best performance in seven weeks, driven by better-than-expected profits from companies like 3M.

3M's stock increased by nearly 23% following a strong quarterly report and a raised profit forecast for the year.

Upcoming earnings reports from major tech companies, including Microsoft and Apple, are expected to influence market trends.

Concerns arose following profit reports from Tesla and Alphabet, suggesting investor overexcitement about AI technology may have inflated stock prices.

The Dow's rise was significantly boosted by a sharp increase in shares of industrial conglomerate 3M, which soared 18%.

In the bond market, treasury yields fell in response to positive inflation data, with the yield on the benchmark ten-year note down by 4.8 basis points.

Consumer sentiment in the U.S. slightly improved in July, with the University of Michigan reporting a revised consumer sentiment index of 66.4.

Wall Street ended the trading session with all major indices registering gains above 1%, concluding a tumultuous week with widespread gains.