Stock on a roll. But the overbought market, a lot of profits will be major obstacles in the next week

People shop at Pioneer Supermarkets on January 12, 2023 in the Flatbush neighborhood in the Brooklyn borough of New York City.

Michael M. Santiago | Getty Images

Stocks closed their first full week of trading in 2023 on a high note, building on strong gains from December: The tech-heavy Nasdaq posted its second consecutive week in the black, up 4%, while the S&P rose 2% and stock prices rose 4%. Dow added more than 1%.

The December report on consumer prices on Thursday certainly helped. The headline figures met economists’ expectations and showed that inflation continues to decline. But it was the underlying findings, particularly with regard to shelter costs — the most likely component of the index — that indicated that one of the main sources of inflation was about to slow.

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