Stocks rose on Friday, with the S&P 500 now resting 0.8% from its record high, as market participants remained optimistic towards U.S. economic recovery ahead of the U.S. Memorial Day market holiday on Monday.

The Dow and S&P 500 rose 0.9% and 1.2% this week, respectively, both breaking a two-week losing streak. The Nasdaq outperform for the week with a 2.1% advance amid the Big Tech comeback.

For the month of May, the Dow and S&P 500 gained 1.9% and 0.6%, respectively, recording their fourth positive month in a row. The Nasdaq, however, dropped 1.5% for the month for its first negative month in seven.

Meme stocks had another wild session on Friday, with shares of AMC Entertainment (AMC  ) rising as much as 38% only to close the day down 1.5%. GameStop (GME  ) also erased earlier gains during the session and closed 12.6% lower.

Here's how the market settled for the week:

S&P 500 Index (SPY  ): +0.08% or +3.23 points to 4,204.11

Dow Jones Industrial Average (DIA  ): +0.2% or +64.81 points to 34,529.45

Nasdaq Composite Index (QQQ  ): +0.09% or +12.46 points to 13,748.74

Consumer sentiment ticked slightly higher at the end of May:

The University of Michigan's final May consumer sentiment index reading came in at a slightly higher-than-expected 82.9, up from the 82.8 previously reported. May's reading was a notable drop from April's print of 88.3.

"Consumer confidence remained largely unchanged at the reduced level recorded at mid-month," Richard Curtin, chief economist for the Surveys of Consumers, said in a statement. "It is hardly surprising that the resurgent strength of the economy produced more immediate gains in demand than supply, causing consumers to expect a surge in inflation. Record proportions of consumers reported higher prices across a wide range of discretionary purchases, including homes, vehicles, and household durables--the average change in May vastly exceeds all prior monthly changes."

Here's how stocks started trading after market open:

S&P 500 Index: +0.36% or +15.29 points to 4,216.17

Dow Jones Industrial Average: +0.46% or +157.90 points to 34,622.54

Nasdaq Composite Index: +0.35% or +51.36 points to 13,786.19

Core Personal Consumption Expenditures Price Index jumps in April:

The Core Personal Consumption Expenditures (PCE) Price Index rose by a faster-than-expected 3.1% in April, the Commerce Department reported on Friday, after rising 1.9% in March. The index is considered a key inflation gauge by the Federal Reserve.

Including volatile food and energy prices, the headline PCE index increased by 3.6% year-on-year and 0.6% on a monthly basis.

Personal income fell less-than-expected in April:

Personal income in the U.S. declined by a less-than-expected rate in April over March, with a decline of 13.1% from March's 20.9% surge, according to the Bureau for Economic Analysis report. April's drop was the report's biggest month-to-month decline on record.

"The decrease in personal income in April primarily reflected a decrease in government social benefit. Within government social benefits, 'other' social benefits decreased as economic impact payments made to individuals from the American Rescue Plan Act of 2021 continued, but at a lower level than in March," the BEA said in a statement. "Unemployment insurance also decreased, led by decreases in payments from the Pandemic Unemployment Compensation program."

Despite the drop in income, spending still grew month-on-month. Personal spending increased 0.5%, in-line with expectations. This followed the upwardly revised 4.7% increase in spending March.