Stock market today: Wall Street resumes its rally after encouraging reports on profits and inflation

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Wall Street is back to climbing on Friday following more encouraging profit reports and the latest signal that inflation is loosening its chokehold on the economy.

The S&P 500 was 0.9% higher in early trading, near its highest level in more than 15 months. The Dow Jones Industrial Average was up 158 points, or 0.4%, at 35,441, as of 10:10 a.m. Eastern time, after breaking a 13-day winning streak a day before. The Nasdaq composite was 1.6% higher.Stocks have been rallying hard recently on hopes high inflation is cooling enough to get the Federal Reserve to stop hiking interest rates.

"Don't underestimate central bank commitment to 2% inflation," Bank of America economists wrote in a BofA Global Research report. Companies also continue to deliver stronger profits for the spring than analysts expected. Roughly halfway through the earnings season, more companies than usual are topping profit forecasts, according to FactSet.

On the losing end was Exxon Mobil. It fell 1.5% and was one of the heaviest weights on the S&P 500. It reported weaker profit for the spring than expected, though its revenue topped forecasts.

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