Market Rally Bolstered by Fed Rate Cut Hints; Retail and Tech Stocks Show Divergence

U.S. equities surged Friday afternoon as dovish comments from a Federal Reserve official fueled expectations of a December rate cut. The Dow climbed 1.4%, while the S&P 500 and Nasdaq advanced 1.2% and 1.1%, respectively. Retailers led gains, with Ross Stores (ROST) soaring 7% to a record high after exceeding earnings estimates and raising guidance. Gap (GAP) followed closely, jumping 8% on strong demand for its flagship brands.

Intuit (INTU) rallied 6% as its AI-powered accounting tools drove quarterly outperformance. However, Oracle (ORCL) slid nearly 6%, extending recent losses amid persistent valuation concerns in the AI sector. Cloud services provider Veeva Systems (VEEV) plummeted over 10% after warning of declining adoption in biopharma.

Commodities reflected risk-on sentiment, with Gold prices rising as Treasury yields dipped to 4.08%. The market's bifurcated performance underscores shifting capital allocations ahead of potential monetary easing.