US stocks post biggest weekly gains of 2024

The S&P 500 closed up 0.5% on Friday and ended the week with a 4% gain, bouncing back from its worst week of 2024 to deliver its best one. The Nasdaq 100 rose 0.5%, driving the weekly gain to 5.9%, also its best of 2024. Small caps, which are often more sensitive to interest rate changes, outperformed the broader market, as Russell 2000 advanced 2.5%.

There were growing hopes among traders that the Federal Open Market Committee would deliver a half-point interest rate cut next week. The likelihood of such a move climbed to 47%, according to CME FedWatch. This was up from 14% on Wednesday. Yields on two-year Treasury dropped, while the US dollar fell. 

All S&P sector ETFs advanced. Utilities took the lead and added 1.4%; it is also the best-performing major sector so far this year, with a 24% gain.

Most S&P 500 stocks rose. Warner Bros. Discovery extended Thursday’s gain and increased 10.8%, while Etsy was up 7.6%. The Biden administration earlier took steps to curb a tariff loophole that were often seen benefitting Chinese e-commerce companies. Adobe, on the other hand, lost 8.5% after a disappointing sales outlook. 

In other news, Trump Media & Technology Group closed up 11.8% after Trump said that he had no plans to sell his stake on Friday when a lockup period expires as soon as next week. Shares of Trump’s media company fell sharply this week after Tuesday’s presidential debate.