Fundstrat's Tom Lee called Nvidia's earnings release a "clearing event" for the stock market and that investors' "animal spirits" are rising.

The Vanguard Mid-Cap Growth ETF was rising 0.6% on Friday morning at $266.77, putting the fund on pace to potentially book its first record close since November 2021, according to Dow Jones Market Data.

Stocks closed higher on Wall Street, giving the market its fifth gain in a row and notching another record high for the Dow Jones Industrial Average.

At the other end of the Dow was Nvidia , which fell 3.2%, shedding $116 billion in market value along the way. The artificial intelligence (AI) chipmaker reported solid earnings e

"There were some warning signs from Target, but if you look at personal income and retail sales, they have been strong all year," said Peter Cardillo, chief market economist at Spartan Capital Securities, in an interview. "That suggests the consumer has buying power."

The Dow Jones Industrial Average climbed 426.16 points, or 0.97%, to finish the session at 44,296.51, while the S&P 500 gained 0.35% to close at 5,969.34, and the tech-heavy Nasdaq inched up 0.16% to end the day at 19,003.65.

Earnings season mostly wrapped up this week, capped off by Nvidia's results. The dollar, meanwhile, continued to rise, hitting its highest level since 2022.

This Fed-based market signal is flashing a warning for the first time in over a decade. Here’s why it matters.