The SPDR S&P 500 ETF Trust (NYSE:SPY) rallied on Thursday and Friday to close out its best week since June as investors cheered better-than-expected inflation data.

On Thursday, the U.S. Labor Department reported the consumer price index gained 7.7% in October, down from 8.2% in September and below the 8% inflation economists were expecting. Core CPI inflation, which excludes volatile food and energy prices, was up 6.3%, below average economist estimates of a 6.5% gain.

The CPI report triggered a huge stock market rally on Thursday, sending the Dow Jones Industrial Average higher by 1,200 points and the Nasdaq up 7.4% on the day. The S&P 500 rallied 5.5% on Thursday, its best one-day performance since April 2020.

On Friday, the University of Michigan reported U.S. consumer sentiment dropped 8.7% on a monthly basis in November and is now down 18.8% from a year ago. Consumer sentiment fell to its lowest level since June, while consumers' inflation expectations for the next year ticked higher from 5% to 5.1%.

Related Link: US Consumer Sentiment Slips 8.7% In November: What It Means For The Markets

Bumpy Ride: LYFT Inc (NASDAQ:LYFT) shares plunged 22% on Tuesday after the ridesharing company's third-quarter revenue and active riders fell short of analyst expectations.

Analysts are now projecting S&P 500 earnings will be down 1% year-over-year in the fourth quarter, according to FactSet.

Economic Numbers: Following the encouraging CPI reading, investors will get more key economic updates on Tuesday when Eurostat releases its preliminary third-quarter Eurozone GDP growth estimate and on Wednesday when the U.S. Census Bureau releases its October Retail Sales report.

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