NEW YORK (CNNMoney.com) -- Stocks rose Friday, extending Thursday's big rally, as investors took in an upbeat view on the inflation outlook and bet the Fed would soon draw a close to its interest rate hiking campaign.

The Dow Jones Industrial average (up 217.24 to 11,190.80, Charts) rose about 0.3 percent while the broader Standard & Poor's 500 (up 3.25 to 1,276.12, Charts) index increased about 0.2 percent after the market open.

The Nasdaq composite (up 8.49 to 2,182.87, Charts) gained about 0.3 percent.

Investors took in a report that showed core consumer prices, which strip out volatile food and energy prices and is the Fed's favorite inflation gauge, rose 0.2 percent last month, in line with estimates.

That figure keeps the 12-month gain at the 2.1 percent level that was reached in April.

The encouraging inflation outlooks comes a day after the Fed raised its target for a key interest rate again but softened its language in its accompanying policy statement.

The blue-chip Dow soared 217 points Thursday, its largest one-day point gain in three years, as investors took the more dovish language as a sign that an end to the central bank's two-year-old rate-hiking campaign may be in sight.

Investors had been worried for weeks that the Fed would raise rates too much and choke off economic growth and corporate profits. But Thursday's news drove them back into stocks, while the dollar sank on the increased likelihood of a pause from the Fed.

Next on tap: the University of Michigan's Consumer Sentiment Index, a reading on consumer confidence.

Economists predict the June index to come in at 82.5, up slightly from the month prior, according to Briefing.com.

Consumer sentiment is quickly followed by Chicago PMI. ET. Economists predict a reading of 59 for June, down from 61.5 in May, according to Briefing.com. A number over 50 indicates growth in manufacturing in the region.

In economic news, personal income rose 0.4 percent last month, exceeding expectations for a 0.2 percent rise, but below the 0.7 percent gain in April.

Personal spending also rose 0.4 percent, in line with estimates, but lower than the 0.7 percent increase in April.

In corporate news, Kirk Kerkorian, one of the largest investors in General Motors Corp., urged the No. 1 automaker to consider a three-way partnership with Nissan Motor Corp. and Renault SA. (Full story)

Shares of GM (Charts) surged 9 percent.

U.S. light crude oil for August delivery edged up 6 cents to $73.58 a barrel in electronic trading.

COMEX gold for August delivery soared $24.60 to $613.50 an ounce.

Treasury prices were little changed, keeping the yield on the benchmark 10-year note at 5.20 percent. Bond prices and yields move in opposite directions.

In currency trading, the dollar sank against the euro and the yen.

In global trade, major Asian markets ended higher. European shares were also higher in early afternoon trading.

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