U.S. Stocks Rise on Rate Cut Expectations and Tech Gains

According to Trading Economics, U.S. stocks closed higher on Friday, with the S&P 500 up by 0.2%, the Nasdaq rising by 0.4%, and the Dow Jones increasing by 0.2%. This positive trend was supported by strong expectations for a 25 basis point interest rate cut by the Federal Reserve next week, with markets pricing in an 87% chance of this decision.

Core PCE data revealed a 0.2% increase in September, with the annual rate slowing to 2.8%. Meanwhile, University of Michigan data indicated improved consumer confidence and a decrease in short-term inflation expectations.

The gains were driven by heavyweight tech stocks, with Alphabet up 1.2%, Meta up 1.8%, and Broadcom up 2.4%. Other stocks showed mixed performances: Microsoft +0.5%, Tesla +0.1%, Apple -0.7%, and Nvidia -0.5%. Netflix fell 2.9% after announcing a deal with Warner Bros Discovery but later reduced losses amid regulatory review reports.

The tech sector's gains expanded, with the XLK ETF achieving its tenth consecutive up session, and Salesforce shares surged 5.3% after strong earnings, concluding the week positively with the S&P 500 rising by 0.4%, the Nasdaq by 0.9%, and the Dow Jones by 0.5%.