Small Caps Rally, Gold Poised For Best Week Since March 2023, Bitcoin Tops $99,000: What's Driving Markets Friday?

Risk appetite remained robust in the final trading session of the week, with all major U.S. indices poised to close the week in positive territory. Small-cap stocks outperformed their large-cap counterparts, continuing their recent streak of dominance.

Fresh business surveys highlighted a notable health in the U.S. economy, with private sector activity recording its strongest expansion in over two and a half years. The services sector, in particular, showed remarkable growth, maintaining its rapid pace of expansion.

The Russell 2000, a benchmark for small-cap equities, surged 1.7% on Friday, building on a 1.5% gain from the previous session. The S&P 500 edged higher, heading for a five-day winning streak, and the Dow Jones Industrial Average climbed past the 44,000 mark, moving tantalizingly close to record highs. Technology stocks posted more modest gains.

The U.S. Dollar Index, tracked via the Invesco DB USD Index Bullish Fund ETF UUP, extended its rally for an eighth consecutive week—the longest streak in 14 months—surpassing the 107 level to hit a two-year high. The dollar's strength was fueled by a mix of robust U.S. economic data and economic malaise in Europe.

In commodities, gold climbed for a fifth straight session, advancing 5.6% for the week, its best weekly performance since March 2023.

Bitcoin BTC/USD also maintained its bullish momentum, soaring past $99,000 and edging closer to the highly anticipated $100,000 milestone.

Friday’s Performance In Major US Indices, ETFs

Major Indices	Price	1-day %chg
Russell 2000	2,401.00	1.7%
Dow Jones	44,211.20	0.8%
S&P 500	5,969.01	0.4%
Nasdaq 100	20,768.99	0.1%

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY rose 0.4% to $595.75.
• The SPDR Dow Jones Industrial Average DIA rose 0.8% to $442.49.
• The tech-heavy Invesco QQQ Trust Series QQQ inched 0.2% up to $506.20.
• The iShares Russell 2000 ETF IWM rallied 1.8% to $238.61.
• The Consumer Discretionary Sector Select Sector SPDR Fund XLY outperformed, rising 1.6%. The Utilities Select Sector SPDR Fund XLU lagged, down 0.1%.

Friday’s Stock Movers

• Intuit Inc. INTU fell 4.4% in reaction to quarterly earnings.
• Other stocks reacting to earnings reports were Copart Inc. CPRT, up 9.8%, Ross Stores Inc. ROSS, up 3.1%, and NetApp Inc. NTAP, down 2.7%.

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Image created using artificial intelligence via Midjourney.