Wall Street Rebounds: Tech Megacaps Lead the Charge

Major indexes on Wall Street closed higher, driven by rebounds in tech megacaps and optimistic inflation data, hinting at potential interest rate cuts. The Dow Jones led increases with a significant boost from 3M. Small-cap stocks also saw gains, suggesting improving economic conditions. Next week’s Fed decision remains a focal point.

Wall Street's major indexes closed higher on Friday, recouping losses from earlier in the week. Investors returned to tech megacaps, easing broad sell-offs, bolstered by inflation data that suggests interest rate cuts could be imminent. The Dow Jones Industrial Average led the rise, fueled by 3M's significant profit forecast boost.

The S&P 500 and Nasdaq Composite also strengthened, thanks to rebounds in megacap stocks such as Meta Platforms. Chip stocks lifted the Philadelphia SE Semiconductor index out of a three-day slump, with key players like Marvell Technology, Broadcom, and Qualcomm seeing gains.

Small-cap stocks, sensitive to economic changes, rose as well. The Russell 2000 and S&P Small Cap 600 hit their fourth weekly highs. Improved inflation conditions hint at the Federal Reserve potentially easing policy by September, even as the central bank's July decision looms. Fed rate cut bets remain steady, enhancing market outlook despite volatility and mixed signals.

(With inputs from agencies.)