Wall Street Climbs Amid Rate Cut Speculations; Adobe and Boeing Movement in Focus

Wall Street's main indexes rose on Friday with investor speculation over a possible larger rate cut by the Federal Reserve. Adobe dropped significantly after forecasting lower-than-expected earnings, while Boeing faced losses due to worker strikes. Consumer sentiment improved, and key sectors and companies showed mixed performances.

Wall Street's primary indexes registered gains on Friday as investors reconsidered the likelihood of a significant interest rate cut by the Federal Reserve next week. Meanwhile, Photoshop maker Adobe faced a substantial decline due to subpar earnings projections for the fourth quarter.

Overnight, the probability of a 50-basis point rate cut surged from 14% to 43%, according to CME's FedWatch Tool. Former New York Fed President Bill Dudley advocated for the larger cut. Reports in major financial publications added to the existing uncertainty.

The Russell 2000 small cap index notably outperformed, rising by 2.2%, benefiting from a lower-rate environment. Michael James of Wedbush Securities noted a shift towards long positions in U.S. equities ahead of the Federal Reserve meeting.

All 11 S&P 500 sectors saw gains, led by materials stocks, which increased by 1.2% due to rising precious metal prices. Consumer sentiment looked brighter for September, although caution remained ahead of the November presidential elections.

The Dow Jones, S&P 500, and Nasdaq Composite approached two-week highs, each registering significant weekly gains. The Philadelphia SE Semiconductor index also climbed, reaching levels last seen in early September.

Regarding individual stock movements, Boeing pared some losses after a worker strike, while Adobe slid 9.3% on disappointing forecasts. Uber saw gains following their announcement of autonomous ride-hailing initiatives in collaboration with Waymo.

(With inputs from agencies.)