Market Recap for Week Ended May 4:

Momentum shift

For the second week in a row, the major U.S. stock indexes fell early in the week, but later recovered. Overall, the Dow and the S&P 500 changed little during one of the busiest weeks of the quarterly earnings season; the NASDAQ gained more than 1%.

Achieving balance

For the first time in more than a year, inflation climbed to the 2% target set by the U.S. Federal Reserve as it seeks to stimulate economic growth without triggering a surge in price increases. The 2% level was reached with Monday’s release of a price index for personal consumption expenditures, the Fed’s preferred gauge for measuring inflation.

Calm April

In the wake of recently elevated market volatility, stocks were relatively stable last month. Despite several sharp daily moves, there was little overall change, as the S&P 500 and the Dow both rose 0.3% for the month and the NASDAQ added 0.1%.

Solid jobs report

The government reported that the economy generated 164,000 new jobs in April and the unemployment rate fell to 3.9%, the lowest level since December 2000. The decline in the jobless rate snapped a six-month string in which the rate stayed unchanged at 4.1%.

Dollar strength

The U.S. dollar extended its recent run of gains relative to other currencies, posting its third positive weekly result in a row. The dollar has strengthened amid expectations that the U.S. Federal Reserve Board will continue to lift interest rates while central banks in Europe take longer to pull back economic stimulus.