The index jumped on Friday for its best session of the year as investors capped a strong month after the Federal Reserve’s preferred measure of inflation met expectations.

The blue-chip Dow rose 574.84 points, or 1.51%, to 38,686.32, led by gains in Salesforce (NYSE: ) and UnitedHealth (NYSE: ), which rose 7.5% and 2.8% , respectively. It added 0.80% to 5,277.51, while the edge slipped 0.01% to 16,735.02, weighed down by declines in Nvidia (NASDAQ: ) and other mega-cap tech stocks.

The S&P 500 and Nasdaq ended five-week winning streaks with losses of 0.51% and 1.1%, respectively. The Dow slipped 0.98%, marking its second straight week of losses.

Despite the tough week, May was a positive month for stocks, with all major benchmarks posting gains for the sixth time in seven months. The Dow rose 2.3% in May, while the S&P 500 gained 4.8%. The Nasdaq rose 6.88% for its best month since November.

Ahead of this week, the biggest economic event will be Friday’s release of May jobs data. JPMorgan economists said they expected a slight decline from last month and estimated that nonfarm payrolls rose by 150,000 last month, with the jobless rate holding steady at 3.9 percent.

“If realized, this growth rate, while steady on its own, would suggest a gradual cooling in facilities research,” the economists wrote.

“The April JOLTS release should also indicate modest further cooling in labor demand,” they added.

Other key macroeconomic events this week are also the ISM manufacturing PMI, due out on Monday.

Investors Await Lululemon, Ciena earnings reports

Most of the first quarter earnings season is over, with only a handful of companies left to report their financial performance for this period.

This week, several earnings reports will be in the spotlight, with the most notable ones being: Lululemon Athletica (NASDAQ: ) and Ciena Corp (NYSE: ). Analysts expect Lululemon to report earnings of $2.38 per share, reflecting 4.4% year-over-year growth, on revenue forecast at $2.2 billion, up 10% year-over-year.

For Ciena’s fiscal 2nd quarter results, due after the close Thursday, industry analysts were expecting earnings of 15 cents per share, down 79.7% year-over-year, on revenue of $894.9 million, down by 20.8% on an annual basis.

Other notable earnings reports coming out in the coming days include Bath & Body Works (NYSE: ), CrowdStrike (NASDAQ: ), Dollar Tree (NASDAQ: ) and Nio (NYSE: ) , among others.

What analysts are saying about US stocks

the bank of america: “Bad news has been good news for stocks over the past two months (-78% correlation between the S&P 500 and the USD), but if growth deteriorates too much, bad news can turn into bad news. We believe the goldilocks range for NFP is +125-175K, which will keep the unemployment rate largely unchanged, assuming labor supply growth remains at or above today’s level. Profits below €125k in NFP could increase the risk of the Sahm* rule being triggered, reviving bearish fears in the market. As long as inflation remains under control, stronger growth will also be positive for equities.”

Goldman Sachs: “The Magnificent 7 currently represents 13% of the large hedge fund portfolio and 19% of the average large-cap core fund portfolio, both shares roughly flat from the previous quarter (Chart 2) . For reference, the seven stocks made up 25% of the Russell 3000 index’s market capitalization at the end of the 1st quarter. At the stock level, hedge funds added to AAPL but reduced net positions in GOOGL, AMZN, NVDA, MSFT and META (NASDAQ: ) in Q1. Additionally, all of these stocks except TSLA remain at the top of the Hedge Fund’s VIP list. Funds reduced positions in each of the Magnificent 7 in Q1, led by MSFT, with 25% of funds in our sample reducing their exposure to the stock.”

Jeffries: “The US market remains expensive on both PE and PE/G. In general, the market is pricing in a bullish environment, expecting the Fed to cut interest rates while the economy continues to thrive, thus supporting corporate earnings. Amid extended valuations, a focus on sustainable earnings becomes even more important.”

RBC Capital Markets: “Valuations are already favorable to the broader market outside of the top 10 S&P 500 names, so the driver will have to be something else. Our work shows that the 10-year yield needs to stop rising, the market needs more clarity and certainty about the path of monetary policy and the timing of cuts, earnings trends need to improve for the broader market to be seen better than the biggest growth names, and economic enthusiasm should return. The trigger to renew the rotation trade can also come from positioning. CFTC data suggests that growth in the large-cap trade is no longer bubbly. But it also doesn’t look out of date suggesting that overbought conditions could return fairly quickly in this corner of the market.”