The Dow Jones Industrial Average (DJI) notched its eighth consecutive session of gains on Friday, closing out its best week of the year despite a dip in consumer sentiment. The benchmark S&P 500 (GSPC) also finished the day in positive territory, while the tech-heavy Nasdaq Composite (IXIC) closed just below the flatline.

The Dow climbed roughly 0.3%, or about 125 points, marking its strongest weekly performance since December 15. Meanwhile, the S&P 500 rose approximately 0.2%, closing above 5,220. However, the Nasdaq Composite experienced more subdued trading.

The University of Michigan's consumer sentiment survey for May revealed a significant 13% decline in overall sentiment, hitting a six-month low. The index reading for the month came in at 67.4, falling well below economist expectations of 76.2. This drop in sentiment comes as investors discuss the possibility of interest rate cuts amid signs of a cooling labor market.

Federal Reserve Governor Michelle Bowman expressed her belief that interest rates should remain at their current levels "for a bit longer," echoing similar sentiments expressed by other Fed officials in recent weeks. Maintaining credibility in the fight against inflation and carefully achieving the 2% inflation goal are of utmost importance, according to Bowman.

In corporate news, shares of TSMC (TSM), the Taiwanese contract chipmaking giant, surged after reporting a 60% increase in sales for April. The strong sales growth was attributed to sustained demand for artificial intelligence (AI) and a revival in consumer electronics, such as smartphones.

Looking ahead, next week's major events include key earnings reports and a critical inflation print. Investors will be watching the Consumer Price Index (CPI) data closely in order to gauge economic trends. Additionally, Walmart's earnings report will provide insights into the retail sector's performance.

Chinese electric vehicle (EV) stocks listed in the US, including Nio (NIO), Li Auto (LI), and Xpeng (XPEV), saw their shares decline on Friday following news that President Biden is expected to unveil tariffs on China strategic industries, including EVs, batteries, and solar cells. The move comes as the administration aims to address concerns about China's economic strength ahead of a critical election year.

In conclusion, despite a drop in consumer sentiment, the Dow Jones Industrial Average secured its eighth consecutive session of gains, capping off its best week of the year. Market participants will closely monitor upcoming economic data and corporate earnings reports for further insights into the direction of the market.