Wall Street Smiles: Investors Eye Potential Fed Rate Cut

Wall Street's major indices rose as investors anticipated a larger interest rate cut from the Federal Reserve. Although Adobe's fourth-quarter forecast disappointed, other tech stocks like Uber and Oracle saw gains. Market uncertainty remains high, with predictions split between a 25 or 50 basis point cut.

Wall Street experienced an uptick on Friday as investors reconsidered the likelihood of a larger interest rate cut by the Federal Reserve next week. The unexpected shift follows former New York Fed President Bill Dudley advocating for a 50-basis point cut.

Market sentiment grew volatile after articles from the Wall Street Journal and Financial Times suggested a 50-bp cut was still in play. Meanwhile, traders had begun leaning towards a smaller 25-bps cut due to recent economic data showing slightly higher producer prices.

Despite Adobe's disappointing fourth-quarter forecast, other stocks like Oracle and Uber performed well, pushing major indices higher. All eyes remain on the Federal Reserve's upcoming meeting, which could significantly impact future market directions.

(With inputs from agencies.)