04:53 PM EST, 01/17/2025 (MT Newswires) -- The Standard & Poor's 500 rose for the first time in three weeks on signs of easing inflationary pressures and strong earnings from major banks.

The benchmark equity index ended Friday's session 2.9% higher at 5,996.66, up from last week's close of 5,827.04. All sectors posted gains, led by financials and energy, up 6.1% each. Materials closed 6% higher.

Official consumer inflation data released this week showed core inflation, which excludes the volatile food and energy components, unexpectedly slowed in December.

"A somewhat benign reading in core consumer inflation on Wednesday coupled with a relatively cooler (producer price index) report on Tuesday offers welcome relief for a (Federal Reserve) increasingly concerned about an acceleration in cost pressures," Stifel said in a note to clients.

Retail sales rose at a slower-than-projected pace last month, while homebuilder confidence unexpectedly grew in January. Housing starts climbed more than expected last month.

Markets widely expect the Federal Open Market Committee to hold interest rates steady later this month, according to the CME FedWatch tool.

The International Monetary Fund raised its global and US economic growth expectations for this year, but said the balance of risks to the overall outlook is tilted to the downside in the medium term.

President-elect Donald Trump is scheduled to take office Monday.

JPMorgan Chase ( JPM ) , Goldman Sachs ( GS ) , Citigroup ( C ) , Bank of America (BAC) and Morgan Stanley ( MS ) reported Q4 financial results that topped Wall Street's views. The performances helped lift bank stocks and contributed to the financials sector's weekly gain.

Materials' rise was aided by a 12% jump in Celanese (CE), which was upgraded at BofA Securities.

The industrials sector increased 4.8% amid a 15% jump in United Rentals ( URI ) . The equipment rental company agreed to acquire H&E Equipment Services ( HEES ) in an all-cash deal worth roughly $4.8 billion.

Real estate also saw a 4.8% weekly gain, with timber real estate investment trust Weyerhaeuser (WY) jumping 11% as CIBC upgraded the stock.

Utilities rose 4.3% despite a 3.5% drop in Edison International ( EIX ) . The company's southern California utility is facing a lawsuit blaming its equipment for igniting a wildfire in Los Angeles, Bloomberg reported.

The consumer staples sector posted a 1.3% gain for the week despite a 5.7% drop in Target ( TGT ) , which held its Q4 earnings forecast steady despite sweetening its comparable sales guidance.

Health care's 0.3% weekly rise came partly on the back of an 8.5% surge in DexCom ( DXCM ) , which got an upgrade at Baird. Drugmakers Moderna (MRNA) and Eli Lilly ( LLY ) lowered full-year revenue expectations, sending their shares down 19% and 9.3%, respectively, for the week.

Major companies scheduled to report results next week include Netflix ( NFLX ) , Johnson & Johnson ( JNJ ) , Charles Schwab ( SCHW ) , Intuitive Surgical ( ISRG ) , American Express ( AXP ) and Procter & Gamble ( PG ) .

Next week's economic calendar will feature the existing home sales report for December and the University of Michigan's preliminary reading of consumer sentiment for January, both due Friday. Markets will be closed Monday in observance of Martin Luther King Jr. Day.