Wall Street Gains: Economic Activity Spurs Investor Confidence

The U.S. stock market closed higher, with key indexes showing weekly gains, driven by strong economic data and investor optimism. Small-cap stocks led performance, while technology and growth stocks lagged. Geopolitical concerns and potential rate cuts influenced market dynamics. Gap Inc reported positive sales forecasts, while Intuit struggled with lower projections.

Wall Street ended the week on a high note, as all major U.S. indexes showed positive weekly gains. Investors reacted positively to robust economic data highlighting strong business activity in the United States.

The small-cap Russell 2000 index outperformed larger indexes, buoyed by optimism over potential interest rate cuts and business-friendly policies expected from President-elect Donald Trump's administration. However, technology giants Alphabet and Nvidia experienced dips amid regulatory challenges and market forecasts.

As the market shifted towards value stocks, industrial stocks led gains on the S&P 500, while consumer discretionary lagged. The Federal Reserve's upcoming policy decision further shaped investor sentiment, with geopolitical tensions also playing a role in market fluctuations.

(With inputs from agencies.)