Stocks climbed for a third consecutive session on Friday as investors digested strong tech earnings and looked past concerns about high inflation and a recessionary environment.

All of the major averages rose to a winning week and their best month of 2022. The Dow Jones Industrial Average advanced 315.50 points, or nearly 1%, to 32,845.13. The S&P 500 jumped 1.4% to 4,130.29, and the Nasdaq Composite added about 1.9% to end the day at 12,390.69.

For the week, the Dow ended higher by nearly 3%, while the S&P 500 and the Nasdaq Composite gained about 4.3% and 4.7%, respectively.

The Dow rose to a 6.7% gain for July. The S&P 500 added 9.1% for the month. The Nasdaq Composite, while still in bear market territory, is up roughly 12.4%. Those were the biggest monthly gains for all three indexes since 2020.

That performance is a stark contrast from the previous six months when stocks tumbled to their June bear market levels. The market reversed as investors' fears about the aggressive pacing of the Federal Reserve's interest rate increases started to wane and the idea that inflation has perhaps peaked began to settle in.

"Starting from a position of depressed sentiment and bearish positioning was an asset, but the bigger picture was a subtle shift in inflation and inflation expectations, and thus the market's expectation for the Fed's path," said Ross Mayfield, investment strategy analyst at Baird. "Of late, corporate earnings resilience has only added to the bull case and likely put a near-term floor under equity markets."