Stocks ended the week on a high note with all three major indices rallying into the close. The tech-heavy Nasdaq Composite ( ^IXIC) led the day's gains, closing up more than 2%. The benchmark S&P 500 ( ^GSPC ) soared more than 1.5%, while the Dow Jones Industrial Average ( ^DJI ) rose 1%, or nearly 400 points. The Dow, S&P 500, and Nasdaq are now at their highest level since mid-September.

Friday's gains came despite fresh economic data that showed the American consumer feels worse about the state of the US economy with expectations for long-run inflation ticking up to a level not seen since 2011.

Bond yields ticked down after spiking Thursday afternoon. The benchmark 10-year yield ( ^TNX ) moved lower to trade near 4.63%.

In commodities, oil rose for the second straight session after plunging to a three-month low on concerns about global demand. West Texas Intermediate crude ( CL=F ) moved up above $77 a barrel, while Brent crude futures ( BZ=F ) closed above $81.50 a barrel.

Investors will now turn their focus to next week's Consumer Price Index (CPI) data, which will provide valuable insight into inflation trends and the Federal Reserve's upcoming interest rate decision. The report is expected to show headline inflation of 3.3%, a deceleration from September's 3.7% annual gain in prices. Core prices, which strip out volatile costs, are expected to have risen 4.1% over last year.

Despite the recent stock rally, which has seen the S&P 500 and Nasdaq snap their longest winning streak in two years due to increased bond yields and a hawkish tone from Fed Chair Jerome Powell, there have been relatively unloved flows into US equities. Equity mutual funds and ETFs faced outflows of $8.4 billion for the week ended November 1, marking a seven-week streak of outflows.

The rise in consumer inflation expectations, as indicated by data released by the University of Michigan, is a concern for the Fed. The central bank is aiming to bring inflation down to their target rate of 2%, and elevated inflation expectations may signify the need for rates to stay higher for longer.

Despite these concerns, stocks continued to move higher in afternoon trading on Friday. The tech-heavy Nasdaq Composite jumped above 1.5%, followed by the benchmark S&P 500, which climbed more than 1%. The Dow Jones Industrial Average pushed above 0.7%, or more than 250 points.

In the cryptocurrency market, Bitcoin prices steadied after surging close to $38,000 on Thursday. Ethereum, the second-largest cryptocurrency by market cap, jumped about 5% to trade near $2,100 on Friday after BlackRock filed for an Ethereum ETF with the Nasdaq on Thursday.

Overall, the stock market rallied to cap off another winning week, with investors eagerly awaiting next week's CPI data to gain further insight into inflation trends and potential market impacts.