US stock market: Largest weekly gain of the year, recession concerns ease

The US stock market closed higher, with the largest weekly gain of the year, as concerns about a US recession have eased. Investor focus is on the annual economic symposium in Jackson Hole, Wyoming from August 22-24.

The S&P 500 and Nasdaq Composite have risen for 7 consecutive trading days, recording their largest weekly gain since late October last year. Positive economic data, such as the US consumer price index (CPI) and retail sales, have contributed to the rally, indicating a gradual decline in inflation and healthy personal consumption.

The Federal Reserve's commitment to cutting rates in September has also boosted confidence. Next week, the market will be watching for comments by Fed Chair Powell at the Jackson Hole meeting, which could impact expectations for rate cuts.

In individual stocks, semiconductor equipment maker Applied Materials fell as its Q4 revenue outlook missed estimates.