US stocks capped another week of record highs as investors bet the Federal Reserve will cut interest rates next week. Markets overwhelmingly expect a quarter-point cut, with the CME FedWatch tool putting the odds above 90%.
The Fed’s call is seen as pivotal, potentially shaping whether the rally continues. On Friday, indexes closed mixed but notched weekly gains: the Dow Jones rose nearly 1%, marking its first winning week in three, while the S&P 500 and Nasdaq posted their best performances since August. Treasury yields held near recent lows, and gold surged to fresh records amid anticipation of a Fed pivot.
Beyond the Fed, economic data this week will include jobless claims and new manufacturing numbers, offering more clues on the labor market and growth.
Mortgage rates have also drawn attention after recording their sharpest weekly drop in a year. The 30-year fixed average fell to 6.35% from 6.5%, according to Freddie Mac.
Earnings season is winding down, but key reports remain. FedEx results are in focus, often viewed as a proxy for global trade and the US economy. Other updates include Lennar, General Mills, Darden Restaurants, and Cracker Barrel, which has drawn headlines for its rebranding efforts.