Dow surges more than 600 points as strong consumer spending report helps offset recession fears

After a strong retail sales report helped soothe some concerns of a pending economic downturn, the US stock market ended the week on a high note.

Consumers increased their spending in June. Consumers think inflation will come down, according to a survey by the University of Michigan.

There is still a chance that we will see stocks make fresh lows, but now appears to be the time for some traders to test the waters.

The data, along with comments from Federal Reserve officials over the past two days, have helped calm some of the market's fears that the central bank would deliver an even bigger rate hike this month than in June.

The US indexes stood after the bell.

• S&P 500: 3,863.16, up 1.92%

• Dow Jones Industrial Average: 31,288.19, up 2.15% (656.02 points)

• Nasdaq Composite: 11,452.42, up 1.79%

Markets are pricing in a 100% chance of a recession this year despite some promising economic data, according to a report. Bank of America said this week that a recession will last through early 2023.

There are good reasons to believe that the worst of inflation is over, according to a New York Times op-ed written by Paul Krugman.

Europe has become the biggest customer for US oil as it deals with tight supplies due to the war in Ukraine. Europe overtook Asia for the first time in two years.

Gary Gensler, head of the SEC, said the agency could consider waiving some securities rules in order to encourage compliance. The public is mostly protected because of non-compliance.

President Joe Biden would leave the Middle East without announcing a deal to increase crude production, according to a report.

The price of West Texas Intermediate was higher. The price of oil went up 1.9% to $100.99.

The price of gold was $1703.20 per ounce. The yield on the 10-year Treasury fell.

The price of the digital currency was $21,135.