Dow leads gains with jumbo rate cut back on the table

Published On Sep 13, 2024, 9:33 AM

U.S. stocks had a strong performance last Friday, with significant weekly gains as expectations for a major interest rate cut by the Federal Reserve increased. The S&P 500 rose by 0.5%, the Nasdaq Composite gained 0.7%, and the Dow increased by 0.5%. The Nasdaq recorded its best week of the year, rising over 5%. The heightened expectations for a potential half-point rate cut by the Fed have shifted Wall Street's sentiment, moving from a previous 15% likelihood to a now estimated 49% chance. The shifts stem from differing opinions on the current economic climate and upcoming Fed decisions, along with ongoing discussions regarding inflation and the job market.