Stocks rebounded higher on Friday and snapped a five-day losing streak thanks to stronger than expected retail sales data and a moderation in inflation expectations. Financial stocks paced Friday's gains, with Citigroup surging 13% as it reported the best second-quarter results of any big bank so far.

U.S. equities posted strong gains last week to kick off the third quarter after one of the worst first-half performances for financial markets in decades in which the S&P 500 tumbled 20% and the Bloomberg U.S. Aggregate Bond Index lost over 10%.

A rough second quarter in the market will come to an end this week. Of a positive note is the S&P 500 rose by more than 3% on Friday and gained 6% for the week.

Global financial markets remained under pressure last week with U.S. equities broadly posting their sharpest weekly losses since the onset of the pandemic in March 2020.

While blistering summer heat is being felt across the U.S., financial markets are feeling the heat from another upside surprise on inflation. Equity markets tumbled lower last week and are sliding back into bear market territory in this week’s early trading following the May inflation report released on Friday with consumer price growth hitting a fresh 40-year high accompanied by a report of record lows in consumer sentiment from the University of Michigan.