Stocks rallied to end the week as a potential debt-ceiling deal started to take shape, although nothing has been finalized.

The Federal Reserve’s preferred inflation gauge, the core personal-consumption expenditures price index, rose 0.4% in April from March, while consumer spending climbed 0.8%.

In today's session:

All three major indexes climbed. The Dow Jones Industrial Average posted a decline for the week. The Nasdaq Composite notched a fifth straight week of gains.

Bond yields rose. The yield on 10-year notes settled Friday at 3.820%, from 3.814% late Thursday. The two-year yield, meanwhile, was at 4.587%, from 4.508%, a 12th straight daily increase.

Nvidia shares rose more than 2% after yesterday’s enormous rally. Meanwhile, Marvell Technology's stock was flying higher. The PHLX Semiconductor Index climbed about 10% for the week.

All but three of the S&P 500's 11 sectors rose on the day. Utilities, healthcare and energy sold off, while consumer discretionary stocks climbed more than 2%.

Amazon.com, Tesla, and Micron Technology were among the S&P 500's top performers, while Ulta Beauty's stock was by far the biggest laggard. Ford's stock rose on Tesla partnership news.

—By Charley Grant and Joe Wallace

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