Wall Street’s major stock indexes closed higher on Friday as investors shrugged off dismal housing market data and shifted into recovery mode, leading to the biggest weekly gains this year.

The major averages rose after fluctuating earlier in the day. At the close of trading, the S&P500 (SP500) +0.2%the Nasdaq Composite (COMP:IND) +0.2%, and the Dow (DJI) +0.2%. The S&P and Nasdaq each recorded their seventh consecutive win, and the Dow recorded its fourth straight rise, led by Boeing (BA).

Recent economic data helped stocks recoup some losses during a summer sell-off sparked by recession fears. For the week, the Nasdaq (COMP:IND) +5.3%the S&P 500 (SP500) +3.9%and the Dow (DOW) +2.9%.

Investors who decided to take a little risk after last week’s volatile trading activity may have been caught off guard, Alex King, head of investment group at Cestrian Capital Research, told Seeking Alpha. “This week the market taught us a lesson in how bull markets behave – namely with brutal abandon and without regard for common sense,” he said.

“Each of the major indexes has had very strong weeks, making August a green month so far – in line with seasonal averages,” he said. Stock markets are heading for a seasonally weak September – “but that won’t happen until it happens. We’re still looking up through the end of the year,” King said.

Stocks fluctuated during Friday’s session after the US Census Bureau reported lower-than-expected July housing starts and building permits. But as the session continued, other sectors of the S&P 500 (SP500) moved higher, with financials (XLK) leading the way. Eight of the index’s 11 sectors gained ground. Industrials (XLI) lagged behind the other groups.

Given the ongoing risks to economic growth, Friday’s housing data was a disappointment. Housing starts fell 6.8% M/M to 1.238 million, missing the consensus of 1.342 million, and building permits fell 4.0% M/M to 1.396 million, versus the consensus of 1.430 million. Housing starts fell to the lowest level since the 2020 lockdowns due to the COVID pandemic, Comerica Bank chief economist Bill Adams noted Friday.

“High interest rates are clearly a reason for this. The interest rate situation is starting to improve in August as financial markets are increasingly confident that the Fed will cut rates by a percentage point over the next year to year and a half,” he said. Hurricane Beryl may also have contributed to weaker starts.

“July’s homebuilding data was significantly weaker than expected, but the third quarter will likely be somewhat better than these ugly monthly numbers,” Adams said.

In the bond market, yields eased on Friday after being mixed. The 10-year US Treasury yield (US10Y) fell 2 basis points to 3.89%. The 2-year US2Y yield fell 3 basis points to 4.06%.

Stocks rose on Thursday on positive economic data and comments from retail giant Walmart (WMT) that helped ease recession worries. In snapshots of consumers – who drive most U.S. economic activity – investors saw retail sales rebound in July, weekly initial jobless claims declined slightly and sentiment among homebuilders softened this month.

“Consumers are still spending, but not nearly as indiscriminately as they did earlier in this cycle. It remains a shaky expansion that is only very slowly leveling off as consumption continues to adjust to a higher interest rate environment and a cooling labor market,” macroeconomic analysis firm Cycle Framework Insights said in a note on Friday.

According to data on Friday, the consumer sentiment report rose in August. The University of Michigan consumer sentiment index for August was 67.8, compared to the consensus estimate of 67.0 and the reading of 66.4 in July.

Among the individual stocks are Applied Materials (AMAT) -2.9% The chipmaker forecast fourth-quarter revenue of $6.93 billion, just above expectations of $6.92 billion. Third-quarter results beat estimates.

H&R Block (HRB) +12% after fourth-quarter results beat analysts’ expectations and the accounting firm announced a 17% dividend increase and a new $1.5 billion share buyback program. Fiscal 2025 guidance came in above estimates.

B. Riley Financial (RILY) +15.9% after the investment firm’s co-founder, co-CEO and chairman of the board, Bryant Riley, offered to acquire the company for $7 per share. The stock recently crashed when the company disclosed a large charge related to some of its investments and a media report emerged revealing an expanding investigation by U.S. authorities.