Traders are watching Friday's economic data for any signs of softness that would reinforce the pervading view that the Fed is on hold for now.
Stocks surged Thursday amid speculation the Fed would not hike rates until sometime next year. Weak economic reports have been feeding that view, so consumer sentiment, data on job openings and turnover, or JOLTs, and industrial production will all be important Friday.
The Dow jumped 217 points Thursday to 17,141, and the S&P 500 rose 29 to 2,023. The market got a nudge from a comment by New York Fed President Bill Dudley, who said he would favor a rate hike this year, but it depends on the strength of the economy. He then added that recent data indicates the economy is slowing.