Wall Street ekes out strong gains as rate hike fears wane

US stocks closed sharply higher on Friday amid upbeat earnings, strong economic data and easing fears of a larger-than-expected interest rate hike by the Federal Reserve.

The Dow Jones Industrial Average gained 658.09 points, or 2.15%, to settle at 31,288.26. The S&P 500 jumped 1.92% to 3,863.16, and the Nasdaq Composite advanced 1.79% to 11,452.42.

A positive reaction to the latest earnings news contributed to the rally on Wall Street, as some traders look to pick up stocks at relatively reduced levels. Shares of Citigroup moved sharply higher after the financial giant reported second quarter earnings that exceeded analyst estimates.

Traders also reacted positively to a slew of U.S. economic data, including a report from the Commerce Department showing retail sales jumped by more than expected in the month of June.

The Commerce Department said retail sales shot up by 1% in June after edging down by a revised 0.1% in May.

A separate report from the University of Michigan unexpectedly showed a modest improvement in U.S. consumer sentiment in the month of July. The report showed the consumer sentiment index inched up to 51.1 in July from a record low 50.0 in June.

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