Wall Street closes higher on bets for Fed rate cut
Wall Street closed higher on Friday, with the S&P 500 and Dow Jones Industrial Average hitting intraday record highs, on bets that the U.S. Federal Reserve will cut interest rates in September, while big banks fell after reporting mixed results.
Some of the market's most valuable companies bounced back after dipping in the previous session. Apple and Nvidia each climbed more than 1%.
The S&P 500 and Dow surged to all-time highs before giving up much of those gains by the close.
JPMorgan Chase's second-quarter profit was lifted by rising investment banking fees. However, shares of the world's largest bank dipped 1.2%.
Wells Fargo tumbled 6% after the lender missed estimates for quarterly interest income, while Citigroup fell 1.8% despite reporting a surge in investment banking revenue.
The S&P 500 banks index lost 1.5%.
The small-cap Russell 2000 rallied for a third straight day, gaining 1.1% and reaching its highest since 2022, while the S&P 400 Mid Cap index rose 0.9%. The two indexes have lagged the S&P 500 this year.
«That rotation into small- and mid-caps is still continuing and that's a positive sign overall,» said Ryan Detrick, chief market strategist at Carson Group.
The most traded stock in the S&P 500 was Tesla, with $38 billion worth of shares exchanged during the session. The electric car maker jumped 3%.
The S&P 500 climbed 0.55% to end the session at 5,615.35 points.
The Nasdaq gained 0.63% at 18,398.45 points, while Dow Jones Industrial Average rose 0.62% to 40,000.90 points.
For the week,
