What is the driving force behind Friday’s market surge and tech rally, as well as the softening of inflation, in stocks?

Stocks rebounded on Friday following a period of volatility on Thursday. This was attributed to positive factors such as reduced concerns about a shift in the Bank of Japan’s policy, strong corporate earnings, and an inflation report indicating a decrease in price pressures in June. Intel Corp. and Roku, Inc. were among the stocks that experienced a significant boost after their earnings reports. The S&P 500 Index rose by 1%, recovering most of the losses from Thursday, while the Dow Jones rose 0.6%. The Nasdaq 100 rallied 1.9%, erasing the previous day’s losses, and small cap stocks in the Russell 2000 gained 1.5%. Overall, the US equity market performed well on Friday, with positive performances in major ETFs except for sectors like Energy and Utilities. Additionally, there were positive developments in economic data, such as an increase in personal spending and a decrease in core inflation. While there were some stocks that experienced declines, others like AstraZeneca and Procter & Gamble saw gains. In terms of commodities and bonds, crude oil continued its streak of gains, treasury yields softened, and gold and silver prices rose. European equity indexes also closed in the green.