Dow, S&P 500 end higher Friday, book best week of gains in two months

U.S. stocks booked modest gains Friday, while advancing for a second week in a row to kick off 2023. The Dow Jones Industrial Average
DJIA,
+0.33%
gained about 112 points, or 0.3%, ending near 34,302, while the S&P 500 index
SPX,
+0.40%
rose 0.4%, according to preliminary FactSet levels. The rate-sensitive Nasdaq Composite Index
COMP,
+0.71%
gained 0.7% Friday, while outperforming the week with a 4.8% gain. The Dow rose 2% for the week and the S&P 500 climbed 2.7%, the best week of gains on a percentage basis in two months, according to Dow Jones Market Data. The rally in stocks has been bolstered by inflation data that continued its retreat. The consumer-price index for December was pegged at a 6.5% annual rate, down from a 9.1% peak last summer. Investors on Friday heard from big banks JPMorgan Chase & Co.
JPM,
+2.52%
and Bank of America
BAC,
+2.20%
as they kicked off fourth-quarter earnings. Treasury Secretary Janet Yellen also warned top U.S. lawmakers that the government is expected to hit its ceiling for borrowing next week, while urging them to suspend or increase the debt limit.