US close: Stocks extend win streak as markets eye rate cut

US stocks rose again on Friday, capping off an impressive win streak that more or less erased the losses made last week, as investors awaited a widely expected interest-rate cut from the Federal Reserve in the coming days.

The Dow ended 0.7% higher at 41,393.78, finishing 2.6% higher than last Friday; the S&P 500 rose 0.5% to 5,626.02, putting its weekly gain at 4.0%; while the Nasdaq increased 0.7% to 17,683.98, jumping nearly 6% over the past five sessions.

Helping sentiment was data showing that US consumer sentiment improved to its highest level since May. The University of Michigan’s consumer sentiment index came in at 69.0 for September, up from 67.9 a month earlier and ahead of the 68.0 consensus forecast.

"Following data showing that US consumer sentiment is at a four-month high, investors are now looking forward to next week's probable first US Fed interest rate cut, possibly by as much as 50 basis points," said Axel Rudolph, senior technical analyst at IG. "It'll be the first in over four years after holding rates at a 23-year high of 5.25% to 5.5% since last July."

Investors widely expect the Federal Funds Rate to be reduced by 25 basis points from the current range – where it stayed since July 2023 – when policymakers meet on 17-18 September, with two further cuts likely this year.

However, in remarks made at a forum organised by The Breton Woods Committee, former New York Fed chief William Dudley said he saw a "strong" case for a 50 basis-point reduction. "I know what I'd be pushing for," Dudley said, according to Bloomberg. As recently as the previous week, Dudley had been anticipating a 25bp cut.

The former central banker also highlighted how "very unusual" it was for there to be this level of uncertainty on the outcome of a Fed meeting this near to the next policy announcement. However, he added that the Fed usually did not like to surprise markets.

Adobe and Oracle

Two prominent names in focus on Friday were software giants Adobe and Oracle following the release of their quarterly earnings after the closing bell on Thursday. Adobe finished down 8% after the Photoshop and InDesign software group underwhelmed with its guidance for the fourth quarter, while Oracle was rising after lifting its medium-term revenue guidance above analysts' forecasts – though earlier impressive gains were mostly erased by the close.

Boeing slumped nearly 4% as thousands of workers went on strike after voting overwhelmingly to reject a tentative 25% pay rise. More than 30,000 factory workers at the US plane manufacturer have downed tools, halting production of Boeing’s 737 Max.

Drugmaker Moderna was hit by a downgrade by JPMorgan from 'neutral' to 'underweight', sending shares down 2%.

Dow Jones - Risers

Walgreens Boots Alliance, Inc. (WBA) $9.21 4.19%
Caterpillar Inc. (CAT) $345.31 1.69%
Travelers Company Inc. (TRV) $237.78 1.59%
Intel Corp. (INTC) $19.66 1.55%
American Express Co. (AXP) $259.00 1.51%
International Business Machines Corporation (CDI) (IBM) $214.79 1.50%
Home Depot Inc. (HD) $379.99 1.48%
McDonald's Corp. (MCD) $296.53 1.43%
Walt Disney Co. (DIS) $90.55 1.40%
Verizon Communications Inc. (VZ) $44.43 1.30%

Dow Jones - Fallers

Boeing Co. (BA) $156.77 -3.69%
JP Morgan Chase & Co. (JPM) $204.32 -1.10%
Dow Chemical Co. (DOW) $50.15 -0.22%
Apple Inc. (AAPL) $222.50 -0.12%

S&P 500 - Risers

VF Corp. (VFC) $18.70 8.47%
Leggett & Platt Inc. (LEG) $12.80 7.20%
Align Technology Inc. (ALGN) $243.77 6.51%
Harley-Davidson Inc. (HOG) $37.74 6.40%
Foot Locker Inc. (FL) $26.94 6.23%
Hanesbrands Inc. (HBI) $6.76 5.62%
Under Armour, Inc. (UA) $7.24 5.08%
General Electric Co. (GE) $178.28 5.06%
Whirlpool Corp. (WHR) $98.59 5.03%
Advance Auto Parts (AAP) $41.43 4.94%

S&P 500 - Fallers

Adobe Systems Inc. (ADBE) $536.87 -8.47%
Boeing Co. (BA) $156.77 -3.69%
Norfolk Southern Corp. (NSC) $245.80 -3.45%
Helmerich & Payne Inc. (HP) $29.85 -2.48%
American Airlines Group (AAL) $10.69 -1.75%
Devon Energy Corp. (DVN) $39.45 -1.40%
Eli Lilly and Company (LLY) $923.71 -1.21%
Albemarle Corp. (ALB) $87.44 -1.20%
Biogen Inc (BIIB) $195.60 -1.16%
JP Morgan Chase & Co. (JPM) $204.32 -1.10%

Nasdaq 100 - Risers

Align Technology Inc. (ALGN) $243.77 6.51%
Micron Technology Inc. (MU) $91.22 4.60%
Walgreens Boots Alliance, Inc. (WBA) $9.21 4.19%
DENTSPLY Sirona Inc. (XRAY) $26.30 3.58%
Henry Schein Inc. (HSIC) $70.38 3.24%
Lam Research Corp. (LRCX) $769.72 2.93%
Applied Materials Inc. (AMAT) $188.47 2.87%
Wynn Resorts Ltd. (WYNN) $78.43 2.85%
Western Digital Corp. (WDC) $65.03 2.81%
Expedia Group Inc. (EXPE) $135.77 2.68%

Nasdaq 100 - Fallers

Adobe Systems Inc. (ADBE) $536.87 -8.47%
Sirius XM Holdings Inc (SIRI) $24.51 -3.96%
American Airlines Group (AAL) $10.69 -1.75%
JD.com, Inc. (JD) $26.24 -1.54%
Biogen Inc (BIIB) $195.60 -1.16%
Regeneron Pharmaceuticals Inc. (REGN) $1,153.54 -0.94%
Take-Two Interactive Software Inc. (TTWO) $152.18 -0.93%
Intuitive Surgical Inc. (ISRG) $489.90 -0.83%
Mercadolibre Inc. (MELI) $2,124.28 -0.74%
Starbucks Corp. (SBUX) $98.57 -0.72%