U.S. stocks posted modest gains on Friday, fueled by expectations of a Federal Reserve interest rate cut in the coming week. As the backlog of economic data from the 43-day government shutdown is processed, investors are analyzing available indicators to assess economic health.

Consumer spending rose in September, aligning with economist forecasts, while the PCE Price Index confirmed inflation within anticipated parameters. Sentiment improved, leading to an 87.2% market pricing chance for a quarter-point rate reduction at the upcoming Fed meeting.

The S&P 500, Nasdaq, and Dow Jones all recorded weekly advances. Warner Bros Discovery shares soared post Netflix acquisition, while healthcare faced declines after changes to vaccine advisory. Small-cap stocks rallied, boosted by expectations

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