04:55 PM EDT, 08/30/2024 (MT Newswires) -- The Dow Jones Industrial Average extended its record closing run Friday as markets evaluated the Federal Reserve's preferred inflation gauge.

The Dow rose 0.6% to 41,563.1, while the Nasdaq Composite jumped 1.1% to 17,713.6. The S&P 500 advanced 1% to 5,648.4. All sectors notched gains, led by consumer discretionary's 1.9% rise.

For the month of August, the S&P 500 advanced 2.3%, while the Dow increased 1.8%. The Nasdaq gained 0.7%.

US markets will be closed Monday for Labor Day.

In economic news, US consumer spending rose in line with market expectations in July, while the Fed's preferred inflation metric unexpectedly held steady at the annual level, government data showed.

"This personal income and spending report was just what the Fed needed to see to further its confidence to start reducing interest rates," BMO said in a note to clients. "Tame headline and core price readings and slowing real disposable income growth should help keep inflation and consumer spending in-check, even as the Fed starts reducing its monetary restriction."

US consumer sentiment in August improved for the first time in five months, while year-ahead inflation expectations continued to drift lower, final results from the University of Michigan's Surveys of Consumers showed.

The US 10-year yield rose 4.2 basis points to 3.91%, while the two-year rate added 2.6 basis points to 3.92%.

In company news, Intel ( INTC ) shares jumped 9.5%, the top gainer on the S&P 500 and the Dow, and the second-best on the Nasdaq. The chipmaker is working with investment bankers Morgan Stanley and Goldman Sachs as its faces challenges, Bloomberg News reported, citing unnamed sources.

Separately, Intel ( INTC ) and International Business Machines ( IBM ) said Thursday they signed a partnership to install the chipmaker's Gaudi 3 artificial intelligence accelerators on IBM Cloud. IBM ( IBM ) shares closed 1.6% higher Friday.

MongoDB ( MDB ) was the best performer on the Nasdaq, up 18%. The database software maker late Thursday lifted its full-year outlook. The move was prompted by better-than-expected fiscal second-quarter results and improving consumption trends, RBC Capital Markets said in a note to clients.

Ulta Beauty ( ULTA ) shares fell 4%, the steepest decline on the S&P 500. The beauty retailer late Thursday posted lower-than-expected earnings and comparable sales for its fiscal second quarter and downgraded its guidance. These are expected to be a drag on the company's share price in the near term, Evercore ISI said in a note to clients.

Overall, S&P 500 companies' quarterly per-share earnings have grown by almost 12% year over year on average, with 74% of firms topping Wall Street estimates as the latest reporting season approaches its close, UBS Securities said in a note e-mailed Friday.

West Texas Intermediate crude oil fell 3.1% to $73.57 a barrel.

Gold dropped 1% to $2,535.40 per troy ounce, while silver declined 2.5% to $29.25 per ounce.