New York, Jun 25 (AP) Stocks were mostly higher Friday, keeping the market on track for its biggest weekly gain since April.

Investors got another set of data showing that inflation is likely going to remain under control for the time being, a relief for investors who have remained keenly focused on the issue for weeks.

The S&P 500 was up 0.3 per cent as of 1:30 p.m. Eastern. The Dow Jones Industrial Average was up 0.6 per cent and the Nasdaq Composite was basically flat. All three indexes are up 2 per cent or more this week alone.

The Dow's gains were being driven by a surge in Nike, which reported blowout earnings late Thursday and gave investors a strong outlook for the year. Nike jumped 15 per cent.

Markets have calmed since the Federal Reserve surprised investors last week by saying it could start raising short-term interest rates by late 2023, earlier than expected, if recent high inflation persists.

Investors got another data point on inflation on Friday. The Commerce Department said inflation tied to a gauge of consumer spending that is closely watched by the Federal Reserve increased 0.4per cent in May and is up 3.9per cent over the past 12 months, well above the Fed's 2per cent target for annual price increases.

“Today's inflation data should calm some nerves about runaway inflation. Remember, the PCE is the Fed's favorite measure of inflation, and it very well could be near a peak in inflation," Ryan Detrick, chief market strategist for LPL Financial, wrote in an email to investors.

Investors are also embracing a bipartisan deal for infrastructure spending. President Biden and a group of Democrat and GOP senators were able to reach a near USD1 trillion deal to build out numerous parts of the country's infrastructure, including roads, rails and ports.

The plan, costing USD973 billion over five years, is the culmination of months of talks, and a larger spending plan from President Biden is still possible later this year.

FedEx fell 4per cent after the company announced it would increase its spending to reduce delivery delays across its network.

Virgin Galactic jumped 33per cent after the company got approval from the Federal Aviation Administration to start its flights into space, the final approval the company to begin commercial spaceflight. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)