Stocks Settle Higher as Chip Makers and Energy Producers Rally

Market Performance - The S&P 500 Index closed up by +0.54%, the Dow Jones Industrials Index by +0.61%, and the Nasdaq 100 Index by +0.78% on Friday [1] - Stock indexes reached 2-week highs, driven by strength in semiconductor stocks and a rally in energy producers following a rise in WTI crude prices [2] Trading Activity - Trading activity was lighter than usual due to a technical outage at the Chicago Mercantile Exchange, which disrupted trading since Thursday evening [3] - Market activity was subdued with only half a day of trading following the Thanksgiving holiday [3] Economic Sentiment - Optimism regarding a potential Fed rate cut has positively influenced stock performance, with bond yields falling amid weak economic news and dovish comments from the Fed [4] - The probability of a Fed rate cut at the upcoming December 9-10 FOMC meeting increased to 83% from 30% the previous week [4][5] Corporate Earnings - The Q3 corporate earnings season is nearing completion, with 475 of the 500 S&P companies having reported results [6] - 83% of reporting S&P 500 companies exceeded forecasts, marking the best quarter since 2021, with Q3 earnings rising by +14.6%, significantly above the expected +7.2% year-over-year [6]