U.S. equity markets took a breather from their recent rally as the S&P 500 broke its six-week stretch of consecutive gains in response to hotter-than-expected inflation readings that pushed rate cut expectations further down the road.

Last week the S&P 500 broke above the 5,000 level with support from well-received corporate earnings announcements and additional signs of U.S. economic resilience. It was less than three years ago, April 2021, that it hit 4,000.

Stocks extended their record-setting run last week with the S&P 500 and the Dow closing Friday at record highs as a blockbuster jobs report bolstered the outlook for corporate profits.

The S&P 500 halted a six-day winning streak on Friday but ended positive for the week. Five of those six days, the S&P 500 had closed at fresh all-time highs. Economic data largely supported a healthy soft-landing outlook, somewhat tainted by several less-than-ideal earnings.

Technology stocks continued to power U.S. equities higher last week with the S&P 500 closing at a new all-time high as the index pushed past its high-water mark set at the end of 2021. For the week, the tech-heavy Nasdaq Composite led the way with a 2.3% gain, while the S&P 500 increased 1.2% and the Dow Jones notched a 0.8% return.