• The S&P 500 jumped 1% on Friday, Jan. 17, 2025, heading into a three-day weekend on a high note as prospects rebounded for additional interest-rate cuts in 2025.
• Intel shares took off following reports that the semiconductor giant could be an acquisition target.
• Freight shipper J.B. Hunt posted lower-than-expected sales and profits for the fourth quarter, and its shares dropped.

Major U.S. equities indexes pushed higher to end the week, with traders set for a day off in observation of Martin Luther King Jr. Day on a Monday that will also see the swearing-in of Donald Trump for his second presidential term.

The strength among stocks to close out the week coincided with rejuvenated optimism that the Federal Reserve could continue to lower interest rates in 2025, bolstered by indications of ebbing inflation. (Here are four reasons inflation is still around.)

The S&P 500 advanced 1% on Friday. Strength in the tech sector helped lift the Nasdaq 1.5%, while the Dow ended the day 0.8% higher.

Intel (INTC) shares surged 9.3%, notching the S&P 500’s best performance, amid reports that the semiconductor giant could be a takeover target. Friday’s push higher extended gains posted by Intel stock earlier in the week after the chipmaker said it would transition its venture fund into a stand-alone entity, with the company remaining an investor. Intel’s interim CEO said the move would help the company boost efficiency and maximize the value of its assets.

SLB (SLB), the world’s largest oilfield services company, reported better-than-expected profits for the fourth quarter, increased its dividend, and stepped up its share repurchases. Although SLB struck a cautious tone for 2025, indicating that year-over-year revenue growth would be limited as high oil supply levels restrain oilfield activities, its shares jumped 6.1% in the wake of the strong earnings report.

Shares of Truist Financial (TFC) gained 5.9% after the bank holding company topped quarterly sales and profit estimates. Net interest income and non-interest income moved higher from their year-ago levels, helping drive the strong results. An increase in average deposit balances also contributed to Truist’s performance, which came despite a downturn in average loan balances.

Shares of J.B. Hunt Transport Services (JBHT) suffered the steepest drop of any S&P 500 stock on Friday, tumbling 7.4% after the shipping firm’s fourth-quarter sales and profits fell short of expectations. Slumping volumes weighed on performance, and the company reported revenue declines across all of its segments. J.B. Hunt’s CEO said that the company remains focused on repairing its margins as it navigates freight-industry headwinds.

Eli Lilly (LLY) shares fell 4.2%, extending losses posted earlier this week after the pharmaceutical giant cut its sales guidance. Friday’s move lower came as Centers for Medicare and Medicaid Services announced that it had selected the popular weight-loss and diabetes treatments made by Novo Nordisk (NVO) for potential price negotiations, raising concerns that similar products from Lilly could also come under Medicare scrutiny. Novo Nordisk’s U.S.-listed American Depository Receipts sank 5.3%.

Shares of Fair Isaac Corp. (FICO), the analytics software firm known for its FICO credit scores, sank 3.5%, giving back gains posted earlier in the week after Jefferies boosted its price target on the stock. Analysts pointed increased expectations for the company’s business-to-business volumes, but slower mortgage originations in the high interest rate environment remain a concern.