U.S. markets finished the week strong, with all major indexes advancing as investor sentiment improved amid easing inflation expectations and stable bond yields. The Russell 2000 and Brazil’s IBOVESPA led the charge, signaling a broader appetite for risk assets. A slightly weaker U.S. Dollar Index, down 0.04% to 100.18, further supported global equity momentum.

The S&P 500 rose 0.37% to 6,796.31, while the Dow Jones Industrial Average gained 0.48% to 47,311.00. The Nasdaq Composite climbed 0.65%, buoyed by tech and communication stocks, as investors rotated back into growth names. Across the Americas, optimism extended to Canada and Brazil, with both markets recording notable advances.

Key Market Closures:

• IBOVESPA (Brazil): 153,447.20 (+1.82%)

• Russell 2000: 2,469.78 (+1.75%)

• S&P/TSX Composite Index (Canada): 30,103.48 (+1.09%)

• Nasdaq: 23,499.80 (+0.65%)

• Dow 30: 47,311.00 (+0.48%)

• S&P 500: 6,796.31 (+0.37%)

• U.S. Dollar Index: 100.18 (-0.04%)

Small Caps and Emerging Markets Lead Gains:
The Russell 2000 surged 1.75%, marking one of its strongest sessions in recent weeks. The rally in small-cap stocks reflected improving investor confidence in the domestic economic outlook, particularly as inflation data pointed to cooling price pressures. Analysts noted that the advance in smaller companies indicates renewed optimism in growth-sensitive segments of the market.

Meanwhile, Brazil’s IBOVESPA soared 1.82% to 153,447.20, outperforming its regional peers. The surge was driven by gains in commodities, financials, and consumer sectors as investors welcomed signs of fiscal discipline and improving macroeconomic conditions. Latin American markets also benefited from the softer U.S. dollar, which tends to attract foreign capital inflows into emerging markets.

Tech and Blue-Chip Strength Support Broader Rally:
On Wall Street, technology stocks helped the Nasdaq outperform other major U.S. benchmarks. Investors continued to favor large-cap growth and AI-related companies, which have been resilient amid a mixed earnings season. The Dow Jones Industrial Average rose 0.48%, supported by financial and healthcare names, while cyclical sectors like industrials and materials also saw renewed buying interest.

The S&P 500’s modest gain reflected steady participation across most sectors, with defensive plays lagging slightly as traders rotated into higher-risk assets. The overall tone was positive, with markets consolidating recent gains after a volatile few sessions earlier in the week.

Currency and Macro Trends:
The U.S. Dollar Index slipped 0.04% to 100.18, reflecting investor confidence and a moderate risk-on environment. The slight dollar decline eased pressure on commodities and emerging markets, which in turn helped support equity gains across the Americas.

Market participants are now shifting focus toward next week’s U.S. inflation and employment data, which could offer more clues about the Federal Reserve’s next policy steps. Analysts suggest that if inflation remains stable, the central bank may maintain a patient approach, allowing equity markets to extend their recent strength.

Outlook:
The strong close across U.S. and Latin American markets signals growing investor confidence in global recovery prospects. With small caps and emerging markets outperforming, traders appear to be embracing a broader rally beyond the large-cap tech leaders that have dominated much of the year.

Heading into next week, markets are expected to remain focused on economic data releases and central bank commentary. For now, easing volatility and a softer dollar provide a supportive backdrop for equities across the Americas.