Equities extended last week’s rebound as cooling labor market indicators, moderating inflation, and steadier consumer sentiment bolstered expectations that the Federal Reserve could continue to cut interest rates at next week’s policy meeting. Lower interest rates would mark a significant shift in market direction and investor strategy.
Technology shares and small cap stocks—typically the most sensitive to rate changes—led the advance.
The Dow Jones Industrial Average rose 0.50 percent for the week to 47,954, near its intraday high in early trading on Dec. 5. The S&P 500 gained 0.31 percent to 6,870, closing just shy of a record. The Nasdaq Composite and Russell 2000 posted the strongest performances, rising 0.91 percent and 0.84 percent, respectively, both approaching all-time highs….