The S&P 500 experiences another rise on Friday, marking its second consecutive week of gains.

Despite investors considering interest rate hikes and the ongoing conflict in Ukraine, the S&P 500 ended the week with a rise on Friday.

The stock market indices experienced varying movements. The Dow Jones Industrial Average increased by 153.3 points or 0.4%, reaching a new high of 34,861.24. The S&P 500 also saw an increase of 0.5%, closing at 4,543.06. However, the Nasdaq Composite experienced a slight dip of about 0.2%, ending the day at 14,169.30.

The three major averages recorded another week of gains, with the Dow rising 0.3%, the S&P 500 increasing 1.8%, and the Nasdaq experiencing a near 2% rally.

The S&P 500 has gained more than 3.9% since March, surpassing the losses it suffered after Russia invaded Ukraine in February.

Despite the ongoing conflict in Ukraine and rising interest rates, the Federal Reserve plans to increase rates multiple times in 2022.

Despite a hawkish Fed and stagflation concerns, equities are rallying, with many investors viewing stocks as the only viable option, according to Mark Haefele, chief investment officer at UBS Global Wealth Management.

On Friday, the 10-year benchmark rate reached a new high of 2.5% as investors anticipated a more aggressive rate hike cycle.

On Friday, financial stocks increased as the 10-year yield surged, with Bank of America and Wells Fargo gaining 1.5% and 2.4%, respectively.

On the positive side, the Nasdaq was boosted by gains in technology stocks, with Zoom and DocuSign among the best performers.

Jerome Powell, the Fed Chair, on Monday pledged to take a firm stance on inflation. This statement was made following the Fed's decision to increase interest rates for the first time since 2018, with further hikes scheduled at each of the six upcoming policy meetings this year.

If necessary, Powell on Monday stated that rate hikes could increase from the usual quarter-percentage-point adjustments to more aggressive half-point increases.

Wall Street raised rate hike expectations after the central bank chief's comments, with firms such as Goldman Sachs and Bank of America predicting half-point hikes in future Fed meetings this year.

Despite rising interest rates, investors are optimistic about the economy's strength, as indicated by promising signs.

The Labor Department reported on Thursday that first-time jobless claims last week reached their lowest level since 1969, indicating a resilient labor market. Economists anticipate that the March jobs report will show similar strength.

Yung-Yu Ma, BMO Wealth Management's chief investment strategist, stated that the 10-year yield is increasing while the belief in growth remains stable. This trend is affecting the market and slightly lifting stock prices, as the immediate concern of the war in Ukraine's impacts was addressed.

The European Union reached a gas deal with the U.S. on Friday, in an attempt to lessen its reliance on Russian energy, while traders closely monitored Europe amidst the ongoing Ukraine-Russia conflict.

—CNBC’s Christopher Hayes contributed to this report.