Wall Street on track for weekly gains after business activity data

Gap increases after annual sales forecast upgrade

Intuit falls after forecasting Q2 results below estimates

Small values ​​touched one-week highs

Indices are on the rise: Dow 0.79%, S&P 500 0.28%, Nasdaq 0.11%

(Updates for afternoon trading)

Abigail Summerville and Johann M Cherian

All three stock indexes rose on Friday, heading for weekly gains, as investors took solace in data pointing to strong economic activity in the world’s largest economy.

A gauge of business activity rose to a 31-month high in November, boosted by lower interest rates and hopes that President-elect Donald Trump’s administration next year will implement more business-friendly policies.

The domestically focused small-cap Russell 2000 index outperformed large-cap indexes, up 1.7%. The index has reached its highest level in more than a week and is expected to post a weekly gain of around 4%.

Alphabet, meanwhile, lost 1.4% after Thursday’s 4% decline after the U.S. Justice Department told a judge the company was monopolizing online search.

AI pioneer Nvidia fell 3.2% on Friday in choppy trading following its quarterly forecast on Wednesday.

The S&P 500, an index tracking value stocks, outperformed, rising 0.74%, as investors diverged from growth peers.

“I’ve been looking for this leadership shift from technology to everything else. I think we may be in the middle of that shift. Small caps are moving a lot better, values ​​are moving much better,” Chief Investment Officer Mark Hackett said. Research at Nationwide.

As of 2:00 p.m., the Dow Jones Industrial Average rose 344.79 points, or 0.79%, to 44,218.78 points, the S&P 500 rose 16.51 points, or 0.28%, to 5,965.22 points and the Nasdaq Composite rose 20.38 points, or 0%, to 5,965.22 points. It increased by 11 points to 44,218.78 points. 18,992.80.

The S&P and Dow hit one-week highs on Friday.

The S&P 500 communications services sector led the decline, losing 0.4%. Consumer discretionary stocks supported the S&P, gaining 1.3%.

Expectations for the Fed’s policy move in December have wavered recently between pause and interruption as investors weigh the potential impact of Trump’s plans on price pressures.

There’s a 59.6% chance the central bank will cut borrowing costs by 25 basis points, according to CME Group’s FedWatch Tool.

Geopolitical issues came to the fore this week as investors watched the missile exchange between Ukraine and Russia after Moscow lowered the threshold for nuclear retaliation. Markets are also awaiting Trump’s Treasury Secretary selection.

“The fact that we’re calm about a nice, stable stair-step pattern higher is very encouraging and reflects the fact that investors are not operating with the feeling that they may be given the amount of uncertainty we face.” Hackett said.

Gap Inc jumped 11% after Old Navy parent raised its annual sales forecast and said the holiday season was off to a “strong start,” according to company news.

Intuit lost 5.3% after its TurboTax parent on Thursday forecast second-quarter revenue and profit below Wall Street forecasts.

Advancing issues outnumbered decliners by a 3.19-to-1 ratio on the NYSE and a 2.43-to-1 ratio on the Nasdaq.

The S&P 500 recorded 78 new 52-week highs but no new lows; The Nasdaq Composite recorded 156 new highs and 69 new lows. (Reporting by Abigail Summerville in New York; Additional reporting by Johann M Cherian and Purvi Agarwal in Bengaluru; Editing by David Gregorio)