U.S. stocks rose on Friday, recovering from losses earlier in the week, as inflation behaved as expected by economists, though still high. The S&P 500, Dow, and Nasdaq all moved closer to their recent all-time highs.

Inflation in the U.S. increased to 2.7% last month, slightly above the Fed’s target but in line with expectations. The hope is that the Fed may continue cutting interest rates to boost the economy amid concerns of overvalued stocks.

President Trump’s latest tariffs announcement, including taxes on imports of various goods, caused ripples in the stock market. Companies like Paccar, Eli Lilly, and Pfizer saw stock movements in response to the news.

Costco’s stock fell despite reporting stronger profits, as concerns about membership renewal rates and revenue growth lingered. Overall, the S&P 500, Dow, and Nasdaq all ended the day higher.

In global markets, European indexes rose while Asian markets saw mixed results. The 10-year Treasury yield remained steady, and U.S. consumer sentiment dipped slightly amid frustrations over high prices.

Despite concerns about a potential U.S. government shutdown next week, investors have historically seen minimal impact from such events on the stock market. The market tends to weather political impasses relatively well.

Read more at Yahoo Finance: Wall Street rises and snaps out of its 3-day losing streak