NEW YORK, May 16 (Xinhua) -- U.S. stocks ended higher on Friday, capping off a strong week across the major indexes fueled by easing U.S.-China trade tensions.

While optimism was tempered by disappointing consumer sentiment data and a stalled tax-and-spending bill in Congress, markets largely held onto gains.

The Dow Jones Industrial Average rose 331.99 points, or 0.78 percent, to close at 42,654.74. The S&P 500 gained 41.45 points, or 0.70 percent, ending the session at 5,958.38. The Nasdaq Composite added 98.78 points, or 0.52 percent, to reach 19,211.10, extending its winning streak to five consecutive sessions.

Ten of the eleven S&P 500 sectors closed in green. Health care led with a gain of 1.96 percent, followed by utilities, which rose 1.42 percent. Energy was the lone laggard, slipping 0.18 percent.

Markets ended the week on a relatively calm note following a strong start driven by the surprise rollback of tariffs between the United States and China, which helped restore confidence and pushed the S&P 500 into positive territory for 2025. Investors appeared more willing to reenter risk assets, though sentiment became more cautious toward the end of the week as concerns resurfaced over inflation and policy uncertainties.

The caution was underscored by Walmart's warning that tariff-driven price increases could impact U.S. consumers, and by the latest University of Michigan consumer sentiment survey, which showed a sharp drop in confidence. The sentiment index for May fell to 50.8, down from 52.2 in April, marking the second-lowest reading on record. Meanwhile, one-year inflation expectations surged to 7.3 percent, the highest since 1981.

Markets also kept a close watch on developments around U.S. President Donald Trump's wide-ranging tax and spending bill, which faced a major setback Friday after Republicans voted against advancing it, despite Trump's push for unity. The bill, which includes significant tax cuts, had been seen as a potential boost for the economy and equity markets.

On trade, Trump said the United States would soon begin notifying countries of the specific tariff rates they will face, noting that limited negotiating capacity prevents the administration from handling all trade deals simultaneously. Investors remained alert for any signs of progress or setbacks in Trump's broader trade agenda.

Among notable performers this week, Nvidia added 0.42 percent on Friday, rebounding into positive territory for the year. Tesla also added 2.09 percent, notching its fourth straight weekly gain, recovering a significant portion of its losses since its April 21 low. UnitedHealth Group was pacing the S&P 500's move higher on Friday, rising 6.4 percent after plunging 11 percent on Thursday following reports of a criminal investigation by the U.S. Department of Justice into the company's Medicare practices.

"Markets are repricing the stagflation risk right now -- what was once the base case for folks who were sure that tariffs were going to shoot inflation skyward immediately, really hasn't been supported in the data," said Jamie Cox, managing partner at Harris Financial Group. "The U.S. consumer may say he/she is worried, but they aren't spending like they are. Consumption trumps all once you filter out all the noise." ■