Stocks rose on Friday, with the S&P 500 and the Nasdaq Composite posting their strongest week of 2024 ahead of the upcoming Federal Reserve meeting.

The S&P 500 climbed 0.54% and closed at 5,626.02, less than 1% from its July all-time high. The tech-heavy Nasdaq Composite added 0.65% to end at 17,683.98. Both indexes posted their fifth consecutive winning day. The Dow Jones Industrial Average jumped 297.01 points, or 0.72%, closing at 41,393.78.

Utilities, communications services and industrials led the market higher on Friday, with each sector adding roughly 1%.

Investors also continued to rake up shares of megacap tech and semiconductor names, which helped drive this week's rebound rally after tech's recent underperformance. Powerhouse chipmakers Super Micro Computer and Arm Holdings added 3.4% and 5.9%, respectively. Alphabet advanced 1.8% and Uber jumped more than 6%.

"Investors are on guard for further bouts of volatility, particularly given the expectations surrounding the Fed meeting," said Quincy Krosby, chief global strategist for LPL Financial. She noted that based on historical patterns, stocks typically have their roughest performance of the year during the second half of September.

On a weekly basis, the S&P 500 rose 4% and the Nasdaq Composite gained 5.9%, the best week this year for both indexes. The Dow has advanced 2.6% during the period.

Wall Street is now looking ahead toward the Fed's policy meeting on Sept. 17-18, where the central bank is largely anticipated to lower interest rates by 25 basis points. Currently, the Fed's target rate is sitting at 5.25% to 5.5%.

Economic data reflecting a moderation in inflation also seemed to support the case for a rate cut. The consumer price index in August came in at 2.5% on annualized basis, the lowest level since February 2021. Wholesale prices, meanwhile, rose 0.2% in August, coming in line with expectations.

Stocks end Friday — and the week — higher

The S&P 500 gained 0.54% to settle at 5,626.02, while the Nasdaq Composite jumped 0.65% to close at 17,683.98. The Dow Jones Industrial Average added 297.01 points, or 0.72%, to end at 41,393.78.

— Pia Singh

Fed should 'move aggressively' with rate cuts, John Paulson says

You can count billionaire investor John Paulson as one of the people who thinks the Federal Reserve should start with a 50-basis-point cut next week.

"I think the Fed is a little behind the curve. … I think they've seen enough data that they can start bringing rates down, and I would suggest more aggressively would be better," Paulson said on CNBC's "Money Movers."

Paulson also discussed his outlook for the U.S. Treasury market and gold. Read more on CNBC Pro.

— Jesse Pound

Don't expect large insights into the Fed's policy path next week, says Bank of America

While Wall Street overwhelmingly expects the first rate cut to come to fruition next week at the Federal Reserve's policy meeting, further insights may be limited.

"Given the uncertainty around the outlook, we doubt we will learn a lot about the policy path," Bank of America U.S. economist Aditya Bhave wrote Friday. "Regardless of the SEP [Summary of Economic Projections] and Powell's tone in the press conference, the data will light the way."

— Brian Evans

S&P 500 utilities, real estate and consumer staples indexes reach 52-week highs Friday

Three of the 11 sectors that comprise the S&P 500 — utilities, real estate and consumer staples stocks — reached 52-week highs Friday.

The utilities and consumer staples groups also traded at an all-time high on Friday, while real estate stocks remained about 13% below their record close set in December 2021, shortly before the Federal Reserve began tightening monetary policy in early 2022.

Notable gainers among consumer staples include Walmart, which rallied to an all-time high, bringing its one-month advance to 18.2% and its market-beating year-to-date gain to more than 53%. On Friday, Walgreens Boots Alliance saw the largest gain, surging 3.9% after lagging all year.

Utilities were led by Vistra, up 5.8% Friday, ahead 15.4% this week and 121% in 2024. Weyerhaeuser dominated the real estate group, higher by 2.5% Friday and up 6.1% this week. Iron Mountain is leading the group in all of 2024 with a 67% gain.

— Scott Schnipper

Stocks making the biggest moves midday

Check out some of the companies making headlines in midday trading:

• Moderna — Shares of the vaccine maker pulled back more than 3% following a downgrade to underweight from JPMorgan. The firm cited Moderna's changes to its revenue forecast as a headwind to the stock's performance moving forward.
• Oracle — The stock rose nearly 2% after the database software company raised its fiscal 2026 revenue outlook. The company also issued strong guidance for the 2029 fiscal year.
• Aptiv PLC — Stock in the auto parts company climbed 3%. CEO Kevin Clark bought about 30,000 shares of Aptiv earlier in the week, a U.S. regulatory filing showed.

Read the full list here.

— Brian Evans

Chip stocks lead this week's Nasdaq gains

Semiconductor stocks rallied this week to help boost the Nasdaq-100 to a nearly 6% weekly gain.

Arm Holdings was the biggest gainer in the concentrated index, surging more than 26%, while Broadcom jumped about 21%. Nvidia rallied 16% and artificial intelligence server maker Super Micro Computer popped about 19%, while Advanced Micro Devices added about 13%.

Technology giants Amazon and Tesla also fared well this week, rising more than 9% each. Microsoft was last up about 7%.

Warner Bros. Discovery and Constellation Energy were among the major winners beyond the technology sector, climbing more than 15% and 13%, respectively.

— Samantha Subin

Small caps headed for a positive week

The benchmark small-cap index Russell 2000 rose 1.9% Friday, putting it on pace for weekly gains of 3.7%. Meanwhile, the broad market S&P 500 is around 4% higher for the week.

Month to date, the Russell 2000 is still lower by more than 2%.

— Hakyung Kim

One-year inflation outlook lowest since late 2020, University of Michigan survey finds

Consumer confidence improved in September while near-term inflation expectations receded to their lowest level in nearly four years, according to the University of Michigan's Survey of Consumers.

The survey's headline reading rose to 69.0, up from 67.9 in August and better than the Dow Jones estimate for 68.4.

On inflation, the one-year outlook dipped to 2.7%, its lowest since December 2020. However, the five-year view rose to 3.1%, its highest since November 2023.

— Jeff Cox

Stocks open in the green on Friday

The S&P 500 opened about 0.15% higher, while the Dow Jones Industrial Average added about 77 points, or 0.2%, shortly after 9:30 a.m. ET. The tech-heavy Nasdaq was just above flat.

— Pia Singh

Import prices fell more than expected in August

Import prices fell 0.3% in August, their biggest decline of the year, the Bureau of Labor Statistics reported Friday.

The decline followed increases of 0.1% in June and July and was the biggest move lower since December 2023. Economists surveyed by Dow Jones had been looking for a drop of 0.2%.

Export prices also fell, slumping 0.7% to reverse a 0.5% increase in July.

— Jeff Cox

RH surges more than 20% after earnings beat, rising demand

Shares of RH jumped more than 20% in premarket trading after stronger-than-expected results for the second quarter.

The home furnishings retailer reported $1.69 in adjusted earnings per share on $830 million of revenue. Analysts surveyed by LSEG were looking for $1.56 in earnings per share on $825 million of revenue.

The company's CEO said in a letter that demand "accelerated into the third quarter" and the company expects that to continue into 2025. The stock was down 12% for the year ahead of the second-quarter report.

Bank of America analyst Curtis Nagle said in a note to clients that there are "more share gains ahead as RH fires on all cylinders," and hiked the price target on RH to $359 per share from $310.

— Jesse Pound

Stocks on the move before the bell

These are the stocks making the biggest moves before the bell:

• Boeing — The stock sank 4% after Boeing factory workers went on strike early Friday after rejecting a new labor contract. The work stoppage will affect production of most aircrafts, including the 737 Max.
• Oracle — Shares of the database software company rallied more than 6%. Oracle lifted its fiscal 2026 revenue forecast and shared strong guidance for the 2029 fiscal year.
• Moderna — Shares dropped 4% after JPMorgan downgraded the drugmaker to underweight. The firm expected changes to the company's long-term revenue forecast to weigh on the stock.

Read the full list here.

— Samantha Subin

Adobe shares take a dive on disappointing fourth-quarter guidance

Adobe shares plunged more than 8% in premarket trading Friday after the software company reported third-quarter results that beat expectations for sales and earnings but came out with disappointing guidance for the fourth quarter.

Adobe posted earnings per share of $4.65, excluding items, on revenue of $5.41 billion for the quarterly period. Analysts polled by LSEG, meanwhile, had called for adjusted earnings of $4.53 on revenue of $5.37 billion.

Still, in total, the company raked in $5.18 billion in subscription revenue during the third quarter, which is up 11% year over year, and also saw growth in its biggest line of business, Digital Media. For more on Adobe's financial results, read here.

— Pia Singh

Stocks headed for strong weekly gains

Here is a look at where the major stock benchmarks stand on the week ahead of Friday's open:

• Dow Jones Industrial Average: up nearly 1.9%, on pace for its fourth weekly gain in five weeks
• S&P 500: up about 3.5%, on pace for its fourth weekly gain in five weeks
• Nasdaq Composite: up 5.3%, headed for first positive week in three weeks

— Fred Imbert

European markets open higher

European stocks opened higher Friday as investors continue to digest the European Central Bank's decision to cut rates and its effect on future monetary policy.

The pan-European Stoxx 600 was up 0.21% in early deals, with all sectors and major bourses trading in positive territory. Utilities led gains, up 0.5%, while health care was 0.46% higher.

— Karen Gilchrist

Tech revival puts sector on pace for best week since mid-August

Investors' move to pick up battered shares of tech names this week has lifted the sector 6.88%.

The tech sector of the S&P 500 is now on track for its best week since Aug. 16.

Names leading the charge in tech's revival include Broadcom, which is up 20% week to date. Shares slid late last week after the company issued current-quarter revenue guidance that was roughly in line with analysts' expectations.

Artificial intelligence play Nvidia surged nearly 16% this week. The chip giant's advance helped lift the S&P 500 and the Nasdaq Composite to their fourth consecutive winning session on Thursday.

Tech names stumbled out the gates to begin September but they have made up considerable ground over the course of this week, shrinking this month's losses to 0.67%

— Darla Mercado, Chris Hayes

Stocks making the biggest moves after hours

Check out the companies making headlines in extended trading:

• Adobe — Shares fell more than 9% after the software company issued soft guidance. Adobe issued a fiscal fourth-quarter revenue forecast in a range between $5.50 billion and $5.55 billion. Analysts polled by LSEG had estimated $5.61 billion in revenue. Guidance for adjusted earnings per share came in at $4.63 to $4.68 per share, while analysts had expected $4.67 in earnings per share. Meanwhile, third-quarter adjusted earnings and revenue beat estimates. 
• RH — The home furnishings company surged nearly 19% after posting a top- and bottom-line beat for the fiscal second quarter. RH reported adjusted earnings of $1.69 per share on $830 million in revenue. Analysts surveyed by LSEG had called for $1.56 in earnings per share and revenue of $825 million.

The full story can be found here.

— Hakyung Kim

Oracle shares pop on strong forward guidance

Oracle shares rallied nearly 6% in extended trading Thursday after the company increased its 2026 revenue guidance.

Management said it now sees at least $66 billion in fiscal 2026 revenue. Analysts surveyed by LSEG were anticipating $64.5 billion.

The company also issued a heady forecast for the 2029 fiscal year, for which it anticipates $104 billion in revenue and 20% year-over-year earnings growth.

More on the forecast can be found here.

— Hakyung Kim, Jordan Novet

Stock futures open near flat Thursday night

U.S. stock futures were little changed Thursday night.

S&P 500 futures slipped less than 0.1%.

Futures tied to the Dow Jones Industrial Average traded near the flatline, while Nasdaq 100 futures fell 0.1%.

— Hakyung Kim