U.S. Stocks Gain Amid Fed Rate Cut Speculations

U.S. stocks closed the week with minor gains as economic data sustained expectations of a Federal Reserve interest rate cut. The Dow, S&P 500, and Nasdaq saw small increases, with communication services leading sectoral growth. Consumer spending rose, and market focus shifted to the upcoming Fed meeting.

The U.S. stock market wrapped up the trading week with modest gains on Friday. This development comes amid lingering anticipation of a Federal Reserve interest rate cut scheduled for next week. Recent economic data has driven these expectations, as investors closely gauge the economic landscape.

The backlog of delayed economic reports post the 43-day government shutdown has gradually diminished, refocusing attention on economic indicators. Notably, consumer spending, which represents more than two-thirds of overall economic activity, increased by 0.3% in September. This matches the predictions of economists and follows a revised 0.5% rise in August.

Moreover, shares of Warner Bros Discovery surged after a $72 billion acquisition agreement with Netflix, while the communication services sector led the market's performance. However, some investors maintain apprehensions regarding inflation, and the Fed's forthcoming meeting is likely to result in significant debate over the decision on rate cuts.

(With inputs from agencies.)