Stocks were little changed on Friday, marking a quiet end to the week after a strong rally that helped major indexes secure their best week of the year. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all closed with gains of about 0.2% each, following a significant rally on Thursday that erased losses from earlier in the month.

The positive momentum was driven by upbeat consumer data, with consumer sentiment rebounding for the first time in five months. Retail sales also showed a decent 3.1% increase during the crucial holiday season, indicating resilience in the consumer sector. This data helped calm recessionary fears that had been triggered by the sharp drop in stocks at the beginning of the month.

Investors have also pared back some of their bets on rate cuts from the Federal Reserve this year. The odds of a 0.25% rate cut next month now stand at 66%, down from almost a certainty earlier in the month. The next key update on rates will come from Fed Chair Jay Powell’s speech at the annual Jackson Hole Symposium next Friday.

Overall, the week’s data releases have shown inflation continuing to fall toward the Fed’s 2% goal, while consumer spending remains healthy and layoffs are not increasing. This has led economists to argue that the soft landing scenario, where the economy avoids a sharp downturn as inflation retreats, is now firmly back in sight. A quiet week of economic data is expected to maintain this narrative, with Powell’s speech potentially altering market expectations for the Fed.